Intel Q2 2024 Earnings: A Horrendous Result With A Miss On Total Revenue, DCAI, Gross Margin, And EPS

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Intel has now announced its earnings for the second quarter of 2024, posting broadly negative results relative to the consensus expectations.

Intel (NASDAQ: INTC) Earnings Release for the Second Quarter of 2024

For the three months that ended on the 30th of June, 2024, Intel reported $12.833 billion in non-GAAP revenue, missing consensus expectations of $12.94 billion.

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Revenue In Billions Of Dollars

Revenue 0369121518 0369121518 Q2 2023 12 Q1 2024 12 Q2 2024 Consensus 12 Q2 2024 Actual 12

Here is the actual performance of Intel's business segments in Q2 2024:

The following chart compares the performance of Intel's two major segments - Data Center and AI (DCAI) and Client Computing Group (CCG) - with Wall Street's consensus expectations (sourced from here and here).

Segmental Revenue Comparison In Millions Of Dollars

DCAICCG 020004000600080001000012000 020004000600080001000012000 Q2 2023 4k6.8k Q2 2024 Consensus 3.1k7.5k Q2 2024 Actual 3k7.4k

Of course, AI is the market's buzzword right now and Intel is trying to capture this thematic tailwind. In recent weeks, the company has introduced the Xeon 6 processors to handle data center-related tasks, the Gaudi 3 AI accelerator that is around 50 percent faster than NVIDIA's H100 GPUs at training generative AI models, and the new Lunar Lake chips that enable PCs to perform AI-related tasks.

Even so, given the fact that Intel's DCAI segment missed consensus revenue expectations in Q2 2024, it seems the company has yet to truly tap into the secular AI-focused tailwind.

During the quarter, the company generated $2.3 billion in cash from its operations. Its cash and cash equivalents and short-term investments now stand at around $29.273 billion.

Intel has reported Q2 2024 non-GAAP