Intel barely beat its own projections, and the Client group had a decent Christmas, but there was little of note beyond that.
When Pat Gelsinger was pushed out of the firm (for the second time), we speculated that there might be bad news on the horizon for Intel. Instead, it’s more of the same gradual decline by a company that has lost its way and now is in a holding pattern under two interim co-CEOs. This begs the question of why it was so urgent to get rid of him without a successor in the first place.
At this point, the best thing we can say is at least they aren’t in a free fall. Intel saw growth in the client space despite atrocious reviews, but the lack of momentum for the latest generation of Xeon is concerning.
And to some, it looks like Xe is dead. Not one word on GPUs during the earnings call; however, we and others know there are two more generations in the pipeline.
Last quarter, after record restructuring and layoffs, Intel declared its major issues were behind them and that the worst is over.
Just kidding. It turns out things aren’t going to turn around until 2026.
For the quarter ended December 31, 2024, Intel reported $14.26 billion in GAAP revenue, beating consensus expectations of $13.81 billion. That’s the third consecutive quarter of declining revenue, and it was off by 7% versus the same period last year.
