Key points:

• Intel beats EPS and revenue forecasts, beats Wall Street expectations。
• Poor first-quarter 2024 outlook raises investor concerns。
• In market shifts, strategy focuses on artificial intelligence and chip manufacturing。
• Share price falls 5% in after-hours market。

Intel Earnings Review and Outlook

Intel (INTC) shares slipped in after-hours trading Thursday after the company's outlook for the first quarter of 2024 missed analysts' expectations。Still, Intel's latest quarterly results beat Wall Street forecasts。

Earnings and revenues exceeding expectations

Intel reports adjusted earnings of 54 cents per share, beating expectations of 45 cents。Revenue reached $15.4 billion, beating expectations by 151.500 million dollars。The performance marked a significant improvement, breaking a seven-quarter revenue slide.。

First Quarter 2024 Outlook

However, the outlook for the first quarter of 2024 is more pessimistic.。Intel forecast earnings of 13 cents per share on sales of $12.2 billion to $13.2 billion, well below LSEG's forecast of 33 cents per share on sales of 141.500 million dollars。

Intel's Strategic Priorities

Under CEO Pat Gelsinger's five-year plan, Intel aims to compete with TSMC for manufacturing services and enhance its own-brand chips.。The company has also optimized through layoffs and divestitures of its business (including splitting off the programmable chip division to make Mobileye a separate entity).。

Business Performance

Customer Computing, Intel's largest division, sales up 33% to $8.8 billion。However, sales in the data center and artificial intelligence division fell 10% to a total of $4 billion.。Intel's foundry services show annual revenue growth of 63%, albeit from a smaller base。

Pre-earnings valuation and market reaction

Ahead of the earnings release, Intel's stock was up 65% over the past year, outperforming the S & P 500。Analysts have high expectations, driven by strong third-quarter results and strategic moves in the AI and CPU businesses.。However, expectations of a full-year decline in revenue and weak performance in the data center and customer computing sectors may reduce investor enthusiasm.。

Short-term market outlook

Given the mixed results - strong earnings outperformance but a cautious outlook for the first quarter of 2024 - the report's short-term outlook for Intel's stock price looks pessimistic.。Investors are likely to respond cautiously, focusing on the challenges in the data center sector and the PC industry as a whole, despite Intel's strategic realignment and cost-cutting.。The market will closely monitor Intel's execution of its long-term strategy, balancing immediate financial pressures with future growth potential in artificial intelligence and chip manufacturing.。