Intel Earnings Beat Estimates, Arrive with a Warning

Intel this week reported a quarterly net income of $8.1 billion on revenues of $18.4 billion, a decline of 7 percent year-over-year (YOY). The results beat expectations, but Intel’s warning about the future triggered a stock price decline.

“Q1 was a strong start to the year, exceeding expectations on both the top- and bottom-line,” Intel CEO Pat Gelsinger said. “With a $1 trillion market opportunity ahead of us, we remain laser-focused on our IDM [integrated device manufacturing] 2.0 strategy. We executed well against that strategy in Q1, delivering key product and technology milestones and announcing plans to expand our manufacturing capacity in both the US and Europe to meet the continued demand for semiconductors and drive a more balanced, resilient global supply chain.”

Intel still derives about half its revenues from its PC chipmaking business: the Client Computing Group (CCG) delivered $9.3 billion in revenues, down 9 percent YOY. Its Datacenter and AI Group brought in an additional $6 billion in revenues (up 22 percent), and the Network and Edge Group added $2.2 billion (up 23 percent). Interestingly, Intel Foundry Services grew 175 percent to $283 million.

More problematically, Intel issued a warning for the future.

“We believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates [of] 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged,” Gelsinger told CNBC in an interview.

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Conversation 15 comments

  • bluvg

    29 April, 2022 - 2:28 pm

    <p>Datacenter stats show a reversal (up instead of down) from previous quarters, which seems like very good news for Intel. Quite a steep drop on the PC side, though.</p>

    • johnnych

      29 April, 2022 - 3:52 pm

      <p>PC sales drop was expected I think given the rush for recent WFH, however, I’ll be interested to see if Apple makes an Apple Silicon X-Serve again like they did in the good old days. The financial savings in terms of heat and power would be amazing to see in future real world usage! 🙂 </p>

      • rob_segal

        Premium Member
        29 April, 2022 - 4:06 pm

        <p>MacOS Server has been discontinued. I highly doubt they will enter the server market again. </p>

  • bluvg

    29 April, 2022 - 5:55 pm

    <p>AMD is not going to make life easy for them, either–looks like they have a forthcoming mobile-oriented APU with graphics performance "akin to a current-generation discrete Radeon RX 6500 XT…" or even 6600. </p>

    • bdollerup

      Premium Member
      29 April, 2022 - 6:10 pm

      <p>Well, if Intel can pursuade AMD to have the silicon made in an Intel fab, then it may not matter that much….. </p>

      • train_wreck

        29 April, 2022 - 7:18 pm

        <p>That feels like an “over my dead body” kind of thing. Stranger events have happened of course…</p>

        • Donte

          01 May, 2022 - 9:24 am

          <p>Sort of like Play Station Network running on Azure. </p><p><br></p><p>Intel has actual fab’s, lots of them and they are building new ones in the US (Ohio). This is something AMD or Apple does not have. </p>

          • pecosbob04

            01 May, 2022 - 10:38 am

            <p>I see that as an issue for Apple. I wonder how they plan to address it.</p>

            • johnnych

              01 May, 2022 - 11:02 am

              <p>Easy, the next article is titled, "Apple buys TSMC!" 🙂 </p>

              • pecosbob04

                01 May, 2022 - 1:21 pm

                <p>Well maybe not all of it. The market cap is near $500B. But a board seat or 2 and controlling interest maybe. I wonder how much they own now.</p><p><br></p>

      • bluvg

        30 April, 2022 - 12:32 am

        <p>Pretty funny times, Intel farming out to TSMC, AMD to Intel….</p>

        • lvthunder

          Premium Member
          02 May, 2022 - 11:48 am

          <p>Not really. Everyone is just racing around to see how they can make the most number of their chips.</p>

          • bluvg

            02 May, 2022 - 2:52 pm

            <p>Right, agreed, they’re making business decisions using logic and data rather than dogma or pride. Just funny in the ironic sense, like I don’t think I could have imagined this 10 years ago.</p>

      • christophercollins

        Premium Member
        30 April, 2022 - 2:05 pm

        <p>When AMD switched it CPU’s from Global Foundries to TSMC, things have gotten pretty good for them. With Intel turning to TSMC itself, I doubt this will ever happen.</p><p><br></p><p>Intel is going to have to work hard for me to regain faith in their node to new node transitions.</p>

        • lvthunder

          Premium Member
          02 May, 2022 - 11:47 am

          <p>Unless you order chips by the millions I don’t think Intel really cares if you have faith or not.</p>


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