The company's first-quarter report showed a net loss of $400 million, compared to a net loss of $2.8 billion in the same period last year. This was the first report since Intel restructured its financial reports to separate its chip manufacturing business, Intel Foundry, which reported a 10% YoY decrease in revenue at $4.4 billion and a $2.5 billion operating loss. Despite this, Intel's largest business, PC and laptop chips, saw a 31% annual increase in sales at $7.5 billion. The company also announced plans to release a new AI processor, Gaudi 3, later this year, with expected sales of over $500 million in the second half of the year.
Key takeaways:
- Intel reported first-quarter earnings that beat Wall Street expectations for earnings per share, but fell short in sales, leading to a drop in stock by over 8% in extended trading.
- Intel's Foundry business reported a decrease in revenue by 10% year-over-year, with a $2.5 billion operating loss during the March quarter.
- Intel's biggest business remains the chips it makes for PCs and laptops, with sales totaling $7.5 billion, up 31% on an annual basis.
- Intel plans to release a new AI processor for servers called Gaudi 3, and expects more than $500 million in sales from these chips in the second half of the year.