ABC summary: Intel's Q4 and full-year 2024 earnings call

The to-the-point summary of the Q&A at Intel's most recent earnings call. I used AI to simplify questions, abridge answers, and bundle by key theme for accessibility and readibility.

Intel Q4 & full-year 2024 earnings call analysis

Financial performance and outlook

Q: What were the key financial metrics for Q4 2024?

• Revenue of $14.3 billion, up 7% sequentially

• Operating cash flow positive $3.2 billion

• Full year 2024 revenue was $53.1 billion, down 2.1% year over year

Q: What is the guidance for Q1 2025?

• Revenue forecast of $11.7-12.7 billion, down 11-18% sequentially

• Gross margin expected at approximately 36% at midpoint

• All three product segments expected to decline at similar rates

Q: What are the margin expectations through 2025?

• Q1 2025 expected to be the low point for gross margins

• Intel Products gross margin to decline from 51% in 2024 due to product mix

• Intel Foundry margins to improve from EUV mix shift despite 10% higher depreciation

• Targeting $17.5 billion opex with further reductions in 2026

Context: Intel's financial performance shows mixed results with sequential growth but yearly decline. The company faces near-term margin pressures due to product transitions and investments, but expects improvements in the second half of 2025 driven by new products and manufacturing efficiencies.

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Manufacturing and foundry services

Q: What is the status of Intel's foundry business?

• Current revenue approximately $18 billion, second largest foundry

• Operating loss over $13 billion in 2024

• EUV wafer revenue grew from 1% in 2023 to >5% in 2024

• Targeting breakeven operating income by end of 2027

Q: How is Intel 18A progressing?