Intel has announced its financial results for the third quarter of 2024. Sales were $13.3 billion, down six percent from the same quarter last year.

Intel posted a decline in revenue in the third quarter of this year, but performed better than Wall Street analysts had predicted. Intel reported mixed results in key segments:

• The Client Computing Group (CCG) generated revenue of $7.3 billion; a decrease of 7% compared to the previous year.
• The Data Center and AI Group (DCAI) reported 9 percent revenue growth to $3.3 billion, reflecting demand for AI applications and data centers.
• The Network and Edge Group (NEX) grew 4 percent to $1.5 billion

Intel previously announced its intention to establish Intel Foundry as an independent subsidiary to improve separation between internal and external customers. This provides the foundry division with greater flexibility for future funding and growth, the company said. Additionally, Intel reported significant progress in the development of its Intel 18A technology, which has received positive interest from customers.

Own production again

Intel will also use 18A internally for key products such as future Panther Lake chips for client applications and Clearwater Forest chips for servers. Currently, Intel uses third-party manufacturing capabilities, particularly TSMC. The company wants to reduce this dependency. 70 percent of the surface area of ​​the new chips must be manufactured in Intel’s own factories.

In addition, Intel is working with Amazon Web Services (AWS) on a new, customized Xeon 6 chip on Intel 3 technology and an AI chip for AWS on Intel 18A technology. These collaborations represent a combined approach in which Intel independently and with partners produces advanced chips to meet increasing demand for specialized and scalable solutions.

Positive outlook

Intel has optimistic expectations for the fourth quarter. The company forecasts revenue growth of $13.3 billion to $14.3 billion. Intel CEO Pat Gelsinger expressed confidence in the progress of the restructuring program, which has already cost about 15,000 jobs, emphasizing a focus on cost control and future growth despite financial pressures in the third quarter. CFO David Zinsner described the restructuring measures introduced as an “important step towards improving profitability and liquidity”.