The following is a summary of the Intel Corporation (INTC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Intel reported a Q1 revenue of $12.7 billion, with a YoY growth of 9%.

• The quarter witnessed a gross margin of 45.1%, surpassing the guidance by 60 basis points.

• The company's EPS stood at $0.18 for the quarter, exceeding the guidance by $0.05.

• Operating cash flow was recorded as negative $1.2 billion.

• The company anticipates stronger sequential revenue growth throughout the year and into 2025.

• Intel predicts peaking of costs in 2024, with revenue improvements in Q3 and Q4 that will help lift gross margins in the second half.

• The company projects better gross margin rates in 2025 than in 2024, targeting mid-50s margins midway between now and 2030, with an ultimate aim of 60%.

Business Progress:

• Intel announced Microsoft as its fifth Intel 18A customer, with another meaningful customer signed on.

• Intel launched the next-generation Gaudi 3 accelerator and the Open Platform for Enterprise AI project.

• The first sustainability summit in the industry was hosted by the company, showcasing its commitment to supply chains that are diverse, resilient, trusted, and sustainable.

• Intel successfully transitioned to a new operating model and introduced Intel Products and Intel Foundry.

• Clearwater Forest, the first Intel 18A product, is slated to be launched next year, enabling Intel to accelerate share gains.

• Intel is preparing for the IPO of Altera with a plan to bring in a private equity partner this year.

• Intel showed progress in its IDM 2.0 vision, high customer interest in Xeon's AI capabilities, and the launching of Sierra Forest, a Xeon 6 product.

• The company hinted at adjusting the volatility of its gross margin, aligning it more with revenue growth, spending parameters in the fabs, start-up costs, and the mix.

• There are expectations of around $500 million in revenue from the introductory Gaudi product, and Intel believes better enterprise AI offerings will trigger significant business growth.

• The company foresees its foundry business breaking even by 2030.

• For software, Intel is developing a seamless transition from Gaudi 3 to Falcon Shores, with added programmability advantages with Falcon Shores.

More details: Intel IR

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