Intel Corporation (INTC) Bundle
A Brief History of Intel Corporation
Foundation and Early Years
Intel Corporation was founded in 1968 by Robert Noyce and Gordon Moore. The company’s initial focus was on semiconductor memory products, and by 1971, it introduced the world's first microprocessor, the Intel 4004, marking a significant milestone in computing technology.
Growth and Innovation
Throughout the 1980s and 1990s, Intel solidified its position as a leader in the semiconductor industry, primarily through its development of the x86 microprocessor architecture. By 1996, Intel became the first company to achieve $1 billion in revenue in a single quarter.
Financial Performance in Recent Years
As of Q3 2024, Intel reported a net revenue of $13.3 billion, a decrease of $874 million from Q3 2023. The year-to-date (YTD) revenue stood at $38.8 billion, roughly flat compared to YTD 2023. The company's operating loss for Q3 2024 was $5.8 billion, while the YTD operating loss reached $11.1 billion, compared to $5.6 billion in YTD 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue | $13.3 billion | $14.2 billion | $38.8 billion | $38.8 billion |
| Operating Loss | $5.8 billion | $1.4 billion | $11.1 billion | $5.6 billion |
| Net Income (Loss) | $(16.6 billion) | $0.3 billion | $(19.1 billion) | $(1.0 billion) |
| Earnings (Loss) Per Share | $(3.88) | $0.07 | $(4.37) | $(0.23) |
Key Developments and Strategic Changes
In 2024, Intel initiated a restructuring plan aimed at improving operational efficiency, which led to a significant increase in restructuring charges. For Q3 2024, total restructuring and other charges amounted to $5.6 billion, compared to $816 million in Q3 2023.
Market Position and Competitive Landscape
Intel continues to face intense competition from companies like AMD and NVIDIA, particularly in the high-performance computing and data center markets. Despite these challenges, Intel has maintained a strong market presence, focusing on innovations in AI and cloud computing technologies to drive future growth.
Looking Ahead
As of September 28, 2024, Intel held cash and cash equivalents totaling $8.8 billion, with total debt reported at $50.2 billion. The company’s ongoing investments in manufacturing and technology are expected to shape its trajectory in the evolving semiconductor landscape.
A Who Owns Intel Corporation (INTC)
Major Shareholders
As of 2024, Intel Corporation (INTC) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders of Intel Corporation:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investors | The Vanguard Group, Inc. | 8.25% |
| Institutional Investors | BlackRock, Inc. | 7.79% |
| Institutional Investors | State Street Corporation | 4.45% |
| Institutional Investors | FMR LLC (Fidelity Investments) | 3.78% |
| Individual Shareholders | Intel Corporation Employees (Various) | ~1.5% |
| Company Insiders | Pat Gelsinger (CEO) | 0.12% |
Institutional Ownership
As of early 2024, institutional investors hold a significant portion of Intel's shares, indicating confidence in the company's long-term prospects. The total institutional ownership is approximately 70.5%, showcasing robust backing from major investment firms. This level of institutional support is crucial for maintaining stability in stock performance.
Insider Ownership
Insider ownership remains relatively low at around 0.5%, with key executives and board members holding shares. This low percentage is typical for large public companies but underscores the importance of aligning executive compensation with shareholder interests.
Recent Changes in Ownership
Recent transactions have shown fluctuations in ownership percentages among major institutional investors. For instance, Vanguard and BlackRock have slightly increased their stakes over the past year, reflecting their ongoing confidence in Intel's strategic direction and market recovery efforts.
Stock Performance Overview
Intel's stock has faced challenges in recent years, impacting ownership dynamics. The share price was approximately $28.50 as of January 2024, down from highs seen in previous years. This decline has prompted value-focused investors to consider Intel as a potential turnaround opportunity.
Ownership Trends
Ownership trends indicate a gradual shift towards active management of institutional stakes, with a focus on enhancing shareholder value through strategic initiatives. The company's restructuring efforts and investments in advanced technologies are expected to play a significant role in shaping future ownership dynamics.
Conclusion
The ownership landscape of Intel Corporation as of 2024 is characterized by strong institutional backing, modest insider ownership, and a focus on long-term value creation. These factors are critical as Intel navigates market challenges and seeks to regain its leadership position in the semiconductor industry.
Intel Corporation (INTC) Mission Statement
Mission Statement Overview
The mission statement of Intel Corporation emphasizes the company's commitment to shaping the future of technology through innovation in semiconductors and computing solutions. Intel aims to deliver cutting-edge technology that empowers individuals and businesses globally.
Financial Performance Highlights
In 2024, Intel's financial performance reflects a mix of challenges and strategic advancements. The company reported a revenue of $38.8 billion year-to-date (YTD) 2024, which is relatively flat compared to the same period in 2023. Key segments contributing to this performance include:
| Segment | YTD 2024 Revenue ($B) | YTD 2023 Revenue ($B) | Growth (%) |
|---|---|---|---|
| Client Computing Group (CCG) | 35.9 | 33.8 | 6.2 |
| Data Center and AI (DCAI) | 9.4 | 9.1 | 3.3 |
| Intel Foundry | 13.0 | 13.7 | -5.1 |
| Altera | 2.0 | 4.4 | -54.5 |
| Mobileye | 0.8 | 1.0 | -20.0 |
Operating Income Analysis
Operating income for Intel has shown significant variation across its segments. The overall operating income for YTD 2024 reached $9.6 billion, which represents a 27% operating margin, up from $6.9 billion (20% margin) in YTD 2023.
| Segment | YTD 2024 Operating Income ($B) | YTD 2023 Operating Income ($B) | Operating Margin (%) |
|---|---|---|---|
| Client Computing Group (CCG) | 7.5 | 5.9 | 20.8 |
| Data Center and AI (DCAI) | 1.1 | 0.9 | 11.7 |
| Intel Foundry | (11.1) | (5.6) | N/A |
| Altera | (1.5) | (0.9) | N/A |
| Mobileye | 0.1 | 0.3 | 12.5 |
Key Developments and Strategic Initiatives
Intel's strategic initiatives include significant investments in research and development, aiming to enhance its manufacturing capabilities and product offerings. In Q3 2024, Intel experienced:
- Restructuring Charges: $2.8 billion due to the 2024 Restructuring Plan.
- Non-Cash Impairments: $3.1 billion related to manufacturing asset depreciation.
- Tax Valuation Allowances: $9.9 billion recorded against deferred tax assets.
Market Position and Future Outlook
Intel continues to strengthen its position in the semiconductor industry by focusing on advanced technologies and strategic partnerships. The company is actively engaging in the AI sector and enhancing its foundry services, which are expected to contribute to future growth.
Stock Performance
As of 2024, Intel's stock performance has been volatile, reflecting broader market trends and company-specific challenges. Key metrics include:
| Metric | Value |
|---|---|
| Current Stock Price ($) | 30.45 |
| Market Capitalization ($B) | 126.3 |
| 52-Week High ($) | 38.50 |
| 52-Week Low ($) | 25.00 |
| P/E Ratio | N/A (Loss) |
Conclusion
Intel's mission to innovate and lead in technology continues to drive its operational strategies and financial performance. The focus on advanced semiconductor solutions and strategic restructuring plans are pivotal as the company navigates the evolving tech landscape.
How Intel Corporation (INTC) Works
Overview of Operations
Intel Corporation operates primarily through four main segments: Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX), and Intel Foundry. As of 2024, Intel is focused on advancing its semiconductor manufacturing capabilities while addressing challenges in the competitive landscape.
Financial Performance
In Q3 2024, Intel reported total revenue of $13.3 billion, a decrease of 6% from Q3 2023, which was $14.2 billion. The year-to-date revenue for 2024 stood at $38.8 billion, roughly flat compared to $38.8 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue ($B) | 13.3 | 14.2 | 38.8 | 38.8 |
| Gross Margin ($B) | 1.997 | 6.018 | 11.761 | 14.664 |
| Net Income (Loss) ($M) | (16,639) | 297 | (19,080) | (980) |
| Earnings Per Share (EPS) | (3.88) | 0.07 | (4.37) | (0.23) |
Client Computing Group (CCG)
The CCG segment generated $4.9 billion in revenue for Q3 2024, an increase of 8% year-over-year. Notebook revenue rose to $14.0 billion for the year-to-date period, reflecting a 17% increase driven by improved inventory levels and higher average selling prices (ASPs).
| CCG Revenue Breakdown ($B) | Q3 2024 | Q3 2023 |
|---|---|---|
| Notebook | 4.9 | 4.5 |
| Desktop | 2.1 | 2.8 |
| Other | 0.372 | 0.611 |
Data Center and AI (DCAI)
The DCAI segment reported Q3 2024 revenue of $3.3 billion, a 9% increase from the previous year, driven largely by increased demand from hyperscale customers. Year-to-date revenue was $9.4 billion, reflecting a 3% increase.
| DCAI Revenue Overview ($B) | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | 3.3 | 3.0 |
| Operating Income | 0.347 | 0.391 |
Network and Edge (NEX)
The NEX segment achieved revenue of $1.5 billion in Q3 2024, a slight increase from $1.4 billion in Q3 2023. The year-to-date revenue was $4.2 billion, down 2% year-over-year.
| NEX Financial Performance ($B) | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | 1.5 | 1.439 |
| Operating Income | 0.268 | 0.100 |
Intel Foundry
Intel Foundry generated $4.4 billion in revenue for Q3 2024, a decrease of 8% year-over-year. The segment experienced an operating loss of $5.8 billion in Q3 2024, compared to a loss of $1.4 billion in Q3 2023.
| Intel Foundry Financial Overview ($B) | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | 4.4 | 4.8 |
| Operating Loss | (5.8) | (1.4) |
Operating Expenses
Total operating expenses, including research and development (R&D) and marketing, general, and administrative (MG&A) expenses, totaled $5.4 billion in Q3 2024, rising by 4% year-over-year. Year-to-date operating expenses were $16.9 billion, an increase of 5% compared to 2023.
| Operating Expenses Overview ($B) | Q3 2024 | Q3 2023 |
|---|---|---|
| R&D Expenses | 3.9 | 3.7 |
| MG&A Expenses | 1.5 | 1.4 |
Liquidity and Capital Resources
As of September 28, 2024, Intel had cash and cash equivalents totaling $8.8 billion and short-term investments of $15.3 billion. Total debt stood at $50.2 billion.
| Liquidity Overview ($M) | Cash and Cash Equivalents | Short-Term Investments | Total Debt |
|---|---|---|---|
| Sep 28, 2024 | 8,785 | 15,301 | 50,236 |
| Dec 30, 2023 | 7,079 | 17,955 | 49,266 |
How Intel Corporation (INTC) Makes Money
Revenue Streams
Intel Corporation generates revenue through multiple operating segments, primarily through the Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX), and Intel Foundry.
| Segment | Q3 2024 Revenue (in Billion USD) | YTD 2024 Revenue (in Billion USD) | Q3 2023 Revenue (in Billion USD) | YTD 2023 Revenue (in Billion USD) |
|---|---|---|---|---|
| Client Computing Group (CCG) | 8.4 | 24.0 | 9.0 | 22.0 |
| Data Center and AI (DCAI) | 3.3 | 9.4 | 3.0 | 9.1 |
| Network and Edge (NEX) | 1.5 | 4.2 | 1.4 | 4.3 |
| Intel Foundry | 4.4 | 13.0 | 4.8 | 13.7 |
| Other Segments (Altera, Mobileye) | 1.0 | 2.8 | 1.4 | 4.3 |
Client Computing Group (CCG)
The CCG segment focuses primarily on the production of processors and related technologies for personal computers. In Q3 2024, CCG generated $8.4 billion in revenue, a decline from $9.0 billion in Q3 2023. For YTD 2024, CCG revenue was $24.0 billion, an increase from $22.0 billion in YTD 2023.
- Notebook revenue was $4.9 billion in Q3 2024, up from $4.5 billion in Q3 2023.
- Desktop revenue was $2.1 billion in Q3 2024, down from $2.8 billion in Q3 2023.
- Other CCG revenue was $372 million, down from $611 million in Q3 2023.
Data Center and AI (DCAI)
The DCAI segment serves cloud service providers and enterprises with optimized solutions for data centers. Revenue increased to $3.3 billion in Q3 2024, up from $3.0 billion in Q3 2023. Year-to-date, DCAI generated $9.4 billion, compared to $9.1 billion in the previous year.
- Server ASPs increased by 16% YTD 2024 due to a higher mix of high core count products.
- Server volume decreased by 11% YTD 2024 due to lower demand in a competitive environment.
Network and Edge (NEX)
The NEX segment reported $1.5 billion in revenue for Q3 2024, up from $1.4 billion in Q3 2023. YTD revenue was $4.2 billion, down from $4.3 billion in YTD 2023.
- Operating income for NEX was $268 million in Q3 2024, representing an operating margin of 18%.
Intel Foundry
Intel Foundry provides contract manufacturing services for other semiconductor companies. In Q3 2024, the segment generated $4.4 billion in revenue, a decline from $4.8 billion in Q3 2023. YTD, Intel Foundry revenue was $13.0 billion, down from $13.7 billion in the prior year.
- Operating loss for Intel Foundry was $5.8 billion in Q3 2024, compared to a loss of $1.4 billion in Q3 2023.
All Other Segments
This category, which includes Altera and Mobileye, reported $1.0 billion in revenue for Q3 2024, down from $1.4 billion in Q3 2023. YTD 2024 revenue was $2.8 billion, a decrease from $4.3 billion in YTD 2023.
- Altera revenue decreased by $323 million in Q3 2024 as customers reduced inventories.
- Mobileye revenue decreased by $45 million in Q3 2024 due to inventory reductions.
Financial Performance Overview
Intel's total revenue for Q3 2024 was $13.3 billion, a decrease of $874 million compared to Q3 2023. Year-to-date, Intel's revenue stood at $38.8 billion, roughly flat with the previous year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue (in Billion USD) | 13.3 | 14.2 | 38.8 | 38.8 |
| Gross Margin (in Billion USD) | 2.0 | 6.0 | 11.8 | 14.7 |
| Operating Income (Loss) (in Billion USD) | (9.1) | (0.01) | (12.1) | (2.5) |
| Earnings (Loss) Per Share (USD) | (3.88) | 0.07 | (4.37) | (0.23) |
Cost Structure
Intel's operating expenses for Q3 2024 totaled $11.1 billion, significantly higher than $6.0 billion for Q3 2023. The increase was driven by restructuring charges, research and development investments, and higher marketing expenses.
| Expense Type | Q3 2024 (in Billion USD) | Q3 2023 (in Billion USD) |
|---|---|---|
| Research and Development | 4.05 | 3.87 |
| Marketing, General, and Administrative | 1.38 | 1.34 |
| Restructuring and Other Charges | 5.62 | 0.82 |
These financial metrics illustrate Intel's challenging environment amid competitive pressures and operational restructuring efforts, affecting its profitability and revenue growth across various segments.
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Article updated on 8 Nov 2024
Resources:
- Intel Corporation (INTC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Intel Corporation (INTC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Intel Corporation (INTC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.