Intel releases third-quarter financial report, artificial intelligence and new foundry business attract much attention

Chipmaker Intel released its third-quarter earnings report today, and its stock price rose nearly 8% in extended trading hours. At the same time, Intel gave an optimistic forecast, with profits and sales exceeding expectations, and mentioned the new customers attracted by its foundry business, as well as revealing that it is receiving increasing attention in the field of AI.

In the third quarter, Intel’s earnings, excluding specific costs such as stock compensation, were 41 cents per share, exceeding Wall Street expectations of 22 cents per share. Revenue fell 8% from the same period last year to $14.16 billion. , but this was still higher than analysts’ consensus forecast of $13.53 billion.

Intel’s net profit for the quarter was US$297 million, down from US$1.02 billion in the same period last year, and its gross profit margin was 45.8%, which was the same as the same period last year.

In terms of guidance, Intel expects fourth-quarter revenue to be between US$14.6 billion and US$15.6 billion, far exceeding the US$14.4 billion target set by analysts. Additionally, Intel forecast earnings of 44 cents per share, compared with expectations of 33 cents per share.

Intel CEO Pat Gelsinger (pictured) said on a conference call that despite continued inventory depletion in the data center server market over the past few quarters, CPU and accelerator card The share of spending has changed, but the market now appears to be normalizing. He mentioned his confidence in the position of Intel and its Xeon CPUs in the fast-growing AI market.

He said: "It's fun to train these large models, but we think the deployment and inference use of these models is what will be really amazing in the future. And... some of them will run on accelerator cards, but A lot of it runs on Xeon."

In recent years, Intel has been promoting its emerging foundry business, which mainly produces computer chips for other companies, Gelsinger also told analysts The progress made in this business is presented. He said that three major customers have already committed to using Intel's 18A manufacturing process technology. Previously, Intel only announced one customer, but this time he did not disclose the names of these customers.

He said: "The other thing we saw in the quarter that was a little unexpected was a huge surge in interest in AI and Intel's advanced packaging technology."

He said that Intel It is still expected to catch up with main rival TSMC in 2025. Intel has developed a plan called "Five Nodes in Four Years" to improve its chip manufacturing process to compete with competitors, and during the quarter Intel revealed that it had made progress at Fab 34 in Leixlip, Ireland. The factory began mass-producing chips using EUV extreme ultraviolet lithography, the most advanced semiconductor manufacturing technology on the market.

He said: "About two and a half years ago, when we started the 'five nodes in four years' plan, many people thought we were a bit ambitious, but we set our sights on achieving our goals. The further away."

Judging from the latest quarterly data, Intel's client computing division, which produces laptops and personal computer chips, had sales of US$7.9 billion, a year-on-year decrease of 3%. Sales of the data center and artificial intelligence division, which makes server chips, fell 10% to $3.8 billion. In this area, Intel acknowledged that it faces some "competitive pressures."

The foundry services business still accounts for a small proportion of Intel's overall business, with revenue of US$311 million, a year-on-year increase of 300%, partly due to an advance payment from a major customer.

Earlier today, Mobileye, Intel’s self-driving car chip listing subsidiary, announced that sales increased by 18% to US$530 million. Finally, sales at Intel's Network and Edge segment, which sells networking chips and low-power processors, fell 32% to $1.5 billion.

Intel revealed earlier this month that it intends to simplify its business by turning its programmable chip unit, currently part of its data center and artificial intelligence group, into a separate business. Intel could ultimately spin off the unit into an independent company through an initial public offering in the next two to three years.

Intel’s Programmable Solutions segment produces field-programmable gate arrays (FPGAs) that customers can program for specific use cases after they ship. FPGA is commonly used in data centers, telecommunications, video encoding, aviation and other industries, and can also be used to run some AI algorithms.

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