Intel has reported a mixed financial performance in the first quarter, announcing a net profit per share of $0.18 and total sales of $12.78 billion, despite challenges in its foundry division. The technology giant disclosed these figures on the 25th, noting significant growth in its Client Computing Group (CCG) and Data Center and AI Group (DCAI), which saw revenues increase by 31% and 5% year-on-year, respectively, to $7.5 billion and $3 billion. However, the newly separated foundry division experienced a 10% revenue decline from the previous year, with a substantial operating loss of $2.5 billion.
The quarter was notably tough on Altera and Mobileye segments, with Altera’s revenue plummeting by 58% to $342 million from last year. CEO Pat Gelsinger expressed optimism about the future, marking the first quarter as the nadir and projecting a recovery driven by AI-enhanced PCs and incremental gains across Intel’s portfolio through to 2025.
Highlighting Intel’s strategic advances, Gelsinger revealed the signing of an 18A (1.8nm) process technology contract with an aerospace and defense client, underlining the technological prowess and strategic importance of Intel’s U.S.-based supply operations. The 18A process, part of Intel’s forward-looking roadmap, also boasts notable customers including Microsoft, Faraday, Ericsson, and Arm.
Preparations for the 18A process are advancing, with the first product, dubbed Clearwater Forest—a next-generation server CPU featuring Foveros Direct hybrid bonding—set for a release next year. Intel anticipates beginning full-scale production in the first half of next year, while its 20A process is slated to start mass production later this year, heralded by the Arrow Lake product.
Intel’s outlook for the second quarter remains cautiously optimistic, with projected sales ranging between $12.5 billion and $13.5 billion. The median expectation is set at $13 billion, indicating steady, albeit cautious, progress in Intel’s key business segments amidst ongoing global semiconductor challenges.
