Q3 2023 Earnings Summary
Reported on Oct 26, 2023 (After Market Close)
Pre-Earnings Price$32.52Last close (Oct 26, 2023)
Post-Earnings Price$34.66Open (Oct 27, 2023)
Price Change
$2.14(+6.58%)
- Intel's Intel Foundry Services has gained significant momentum, with three committed external customers on its leading-edge Intel 18A process, including major prepay customers, and expects to secure a fourth by year-end, indicating strong industry confidence in Intel's process leadership and foundry capabilities.
- Intel's Data Center and AI (DCAI) segment returned to profitability this quarter, with record Average Selling Prices (ASPs) driven by a strong ramp of newer products like Sapphire Rapids; the company's road map for future products like Emerald Rapids, Sierra Forest, and Granite Rapids is healthy and positions Intel well to regain market share and expand margins in the data center market.
- The Client Computing Group (CCG) is demonstrating strong health and momentum, with three consecutive quarters of exceeding expectations, healthy customer inventory levels, and a positive outlook driven by the launch of new products like Meteor Lake (Core Ultra) and tailwinds from Windows 10 end-of-service and Microsoft's Copilot launch, supporting Intel's expectation of a return to a PC TAM of approximately 300 million units.
- Intel faces competitive pressures in its Data Center business, having lost market share in Data Center CPUs due to past issues.
- Export controls targeting high-end AI accelerators may impact Intel's sales in China, potentially affecting growth in AI products like Gaudi.
- Revenues from Intel's foundry business may not materialize for 2-3 years, limiting immediate impact on financials despite adding new customers.
Research analysts covering INTEL.