Intel Revenues Grew 9 Percent in Q1, But Warns on Q2

Struggling microprocessor maker Intel posted a net loss of $400 million on revenues of $12.7 billion, somehow beating expectations. Revenues were up 9 percent year-over-year (YOY), but the company warned of a weak current quarter, sending its share price tumbling.

“We are making steady progress against our priorities and delivered a solid quarter,” Intel CEO Pat Gelsinger said. “Strong innovation across our client, edge, and data center portfolios drove double-digit revenue growth in Intel Products. Leading-edge semiconductors are being manufactured in the U.S. for the first time in almost a decade, and we are on track to regain process leadership next year as we grow Intel Foundry. We are confident in our plans to drive sequential growth throughout the year as we accelerate our AI solutions and maintain our relentless focus on execution, operational discipline, and shareholder value creation in a dynamic market.”

Intel’s Client Computing Group delivered $7.5 billion in revenues, up 31 percent YOY. The firm reported that PC makers have now shipped nearly 5 million “AI PCs” using its Core Ultra processors, and it expects to beat its previous forecast of over 40 million AI PCs by the end of 2024. Second-generation Core Ultra processors will “ship in volume” in the second half of 2024, Intel said.

Its Data Center and AI business unit provided another $3 billion in revenues, a gain of 5 percent YOY, while Network and Edge revenues hit $1.4 billion, down 8 percent. Intel Foundry, which is now reported as a separate business, added $4.4 billion in revenues, a loss of 10 percent YOY.