Intel fights to get its mojo back with drastic cuts and restructuring,
while Microsoft strolls into the AI sunset without a care.
Intel’s latest earnings report isn’t exactly a victory lap—it’s more
like a roll down a steep hill. Once the king of chips, Intel is now scrambling
to regain relevance as its Q3 2024 earnings reveal a company caught in a
tightening squeeze. With
revenue rising to $13.28 billion, but still facing a net loss of $16.6 billion,
the tech giant is in serious self-help mode, banking on restructuring and
cost-slashing to climb back up. So, let’s dig into what Intel is up to as it
tries to pull itself up by the bootstraps in a market that’s zooming forward at
breakneck speed.
Intel shares pop 12% on earnings beat, uplifting guidance https://t.co/x237C3Whq0
— CNBC (@CNBC) October 31, 2024
Revenue: The Sinking Ship
Intel’s revenue picture isn’t exactly rosy. The haul in Q3, a 6% year
over year decline, represents a decline that has Wall Street raising eyebrows
and Intel reaching for the repair kit. Turns out, selling chips isn’t quite as
lucrative when every competitor out there is beating you to the latest tech
trends. Both the Client Computing and Datacenter
Data Center
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
Read this Term and AI segments are facing
declines, making it look like Intel’s fabled dominance is more of a distant
memory. And with fierce competition in every corner of the market, Intel’s
recovery plan isn’t going to be a walk in the park—it’s going to be more like
scaling Everest with a boulder on its back. But despite all this, Intel shares
rose 7% in Thursday extended trading, it wasn’t as bad as it could have been.
Why?
Cost-Cutting: Intel’s Belt-Tightening Bonanza
In response to its lagging performance, Intel’s CEO Pat Gelsinger is
going full austerity, aiming to slash up to $10
billion in operating costs over the next three years. The plan? Strip down
Intel’s bloated cost structure and focus on core strengths. This is a move that
may bring Intel back to basics, but it’s also a gamble that could leave the company
stretched thin as it fights to stay in the game. It’s as if Intel is trying to
reinvent itself by trimming off everything that doesn’t absolutely need to be
there—kind of like chopping off the sleeves to make a jacket “summer-friendly.”
The company has its sights set on becoming a leaner, meaner tech machine, but
whether this will be a quick fix or a painful reset is anyone’s guess.
Chasing AI: Playing Catch-Up in Microsoft’s Shadow
One of the biggest elephants in Intel’s conference room is artificial
intelligence. Rivals like NVIDIA and Microsoft are way ahead in the artificial intelligence (AI
Artificial Intelligence (AI)
Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in
Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in
Read this Term) game,
making Intel’s efforts feel more like it’s trying to join a party that started
hours ago. Microsoft, in particular, is soaking up the AI spotlight, fresh off
a Q1 earnings win with solid cloud growth and a relentless focus on AI-driven
products. While Intel scrambles to refocus its Datacenter and AI segment,
Microsoft is effortlessly cruising along, rumor has it that it can’t build data
centers fast enough, proving once again that being late to the AI party doesn’t
cut it in today’s tech landscape.
In fact, the contrast here is hard to ignore. Microsoft is reaping the
rewards of its big bets on cloud and AI, basking in investor applause while
Intel is stuck in “catch-up” mode. It’s like watching an Olympic sprinter
effortlessly finish a race while the rest of the pack is still tying their
shoes.
Hope on the Horizon?
Intel’s not ready to throw in the towel just yet. Amidst the
challenges, there are glimmers of hope. The company is pinning some of its
future on partnerships and foundry services, hoping to transform into a
one-stop shop for other tech firms needing chip manufacturing. This is part of
its long-term strategy to diversify revenue streams and insulate itself from
the fierce competition in consumer and data center markets. Intel is aiming to
become the “go-to foundry” for a host of other tech companies—a bold move that
could stabilize the ship or, let’s be real, be a whole new adventure in
overextending.
Sure, it’s a smart pivot, but it’s also Intel’s way of hedging its
bets: if it can’t keep up in the direct-to-consumer market, it’s going to try
and become the market itself. The shift could pay off if Intel manages to make
this foundry-first approach work, but that’s a big if, considering how
competitive and cost-intensive the foundry business is.
While Intel Struggles, Microsoft Shows How It’s Done
LISTEN NOW: Jim Cramer and Scott Wapner discuss the "Magnificent 7" earnings front: Meta and Microsoft shares under pressure as guidance related to AI overshadowed better-than-expected profits and revenue. Listen and follow the @SquawkStreet podcast here: https://t.co/FZ7yRasmzi pic.twitter.com/gaHNKNaG8R
— CNBC (@CNBC) October 31, 2024
In the end, Intel’s latest earnings read like a cautionary tale for
tech giants who are finding it hard to keep up with rapid innovation. Where
Intel is busy trimming down and “right-sizing,” Microsoft has long embraced the
forward momentum, diving headfirst into AI and cloud computing and coming out
on top. If Intel’s Q3 report is any indication, the chipmaker has some serious
legwork to do. Meanwhile, Microsoft’s smooth-as-silk earnings suggest that, in
the high-speed world of tech, you either evolve or watch from the sidelines. Microsoft’s
revenue increased 16% year over year for the quarter, according to a statement. Net income rose 11% to $24.67 billion from
$22.29 billion from a year ago.
So, can Intel muscle its way back to relevance, or will it keep playing
catch-up while rivals like Microsoft revel in their lead? For now, the chip
giant might want to take a few notes from Microsoft’s playbook: sometimes, the
best way to survive is to sprint ahead of the pack.
LISTEN NOW: Jim Cramer and Scott Wapner discuss the "Magnificent 7" earnings front: Meta and Microsoft shares under pressure as guidance related to AI overshadowed better-than-expected profits and revenue. Listen and follow the @SquawkStreet podcast here: https://t.co/FZ7yRasmzi pic.twitter.com/gaHNKNaG8R
— CNBC (@CNBC) October 31, 2024
And this rounds up our coverage of big tech's earnings.
For more news around the edges of finance, follow our Trending section.
Intel fights to get its mojo back with drastic cuts and restructuring,
while Microsoft strolls into the AI sunset without a care.
Intel’s latest earnings report isn’t exactly a victory lap—it’s more
like a roll down a steep hill. Once the king of chips, Intel is now scrambling
to regain relevance as its Q3 2024 earnings reveal a company caught in a
tightening squeeze. With
revenue rising to $13.28 billion, but still facing a net loss of $16.6 billion,
the tech giant is in serious self-help mode, banking on restructuring and
cost-slashing to climb back up. So, let’s dig into what Intel is up to as it
tries to pull itself up by the bootstraps in a market that’s zooming forward at
breakneck speed.
Intel shares pop 12% on earnings beat, uplifting guidance https://t.co/x237C3Whq0
— CNBC (@CNBC) October 31, 2024
Revenue: The Sinking Ship
Intel’s revenue picture isn’t exactly rosy. The haul in Q3, a 6% year
over year decline, represents a decline that has Wall Street raising eyebrows
and Intel reaching for the repair kit. Turns out, selling chips isn’t quite as
lucrative when every competitor out there is beating you to the latest tech
trends. Both the Client Computing and Datacenter
Data Center
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more
Read this Term and AI segments are facing
declines, making it look like Intel’s fabled dominance is more of a distant
memory. And with fierce competition in every corner of the market, Intel’s
recovery plan isn’t going to be a walk in the park—it’s going to be more like
scaling Everest with a boulder on its back. But despite all this, Intel shares
rose 7% in Thursday extended trading, it wasn’t as bad as it could have been.
Why?
Cost-Cutting: Intel’s Belt-Tightening Bonanza
In response to its lagging performance, Intel’s CEO Pat Gelsinger is
going full austerity, aiming to slash up to $10
billion in operating costs over the next three years. The plan? Strip down
Intel’s bloated cost structure and focus on core strengths. This is a move that
may bring Intel back to basics, but it’s also a gamble that could leave the company
stretched thin as it fights to stay in the game. It’s as if Intel is trying to
reinvent itself by trimming off everything that doesn’t absolutely need to be
there—kind of like chopping off the sleeves to make a jacket “summer-friendly.”
The company has its sights set on becoming a leaner, meaner tech machine, but
whether this will be a quick fix or a painful reset is anyone’s guess.
Chasing AI: Playing Catch-Up in Microsoft’s Shadow
One of the biggest elephants in Intel’s conference room is artificial
intelligence. Rivals like NVIDIA and Microsoft are way ahead in the artificial intelligence (AI
Artificial Intelligence (AI)
Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in
Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in
Read this Term) game,
making Intel’s efforts feel more like it’s trying to join a party that started
hours ago. Microsoft, in particular, is soaking up the AI spotlight, fresh off
a Q1 earnings win with solid cloud growth and a relentless focus on AI-driven
products. While Intel scrambles to refocus its Datacenter and AI segment,
Microsoft is effortlessly cruising along, rumor has it that it can’t build data
centers fast enough, proving once again that being late to the AI party doesn’t
cut it in today’s tech landscape.
In fact, the contrast here is hard to ignore. Microsoft is reaping the
rewards of its big bets on cloud and AI, basking in investor applause while
Intel is stuck in “catch-up” mode. It’s like watching an Olympic sprinter
effortlessly finish a race while the rest of the pack is still tying their
shoes.
Hope on the Horizon?
Intel’s not ready to throw in the towel just yet. Amidst the
challenges, there are glimmers of hope. The company is pinning some of its
future on partnerships and foundry services, hoping to transform into a
one-stop shop for other tech firms needing chip manufacturing. This is part of
its long-term strategy to diversify revenue streams and insulate itself from
the fierce competition in consumer and data center markets. Intel is aiming to
become the “go-to foundry” for a host of other tech companies—a bold move that
could stabilize the ship or, let’s be real, be a whole new adventure in
overextending.
Sure, it’s a smart pivot, but it’s also Intel’s way of hedging its
bets: if it can’t keep up in the direct-to-consumer market, it’s going to try
and become the market itself. The shift could pay off if Intel manages to make
this foundry-first approach work, but that’s a big if, considering how
competitive and cost-intensive the foundry business is.
While Intel Struggles, Microsoft Shows How It’s Done
LISTEN NOW: Jim Cramer and Scott Wapner discuss the "Magnificent 7" earnings front: Meta and Microsoft shares under pressure as guidance related to AI overshadowed better-than-expected profits and revenue. Listen and follow the @SquawkStreet podcast here: https://t.co/FZ7yRasmzi pic.twitter.com/gaHNKNaG8R
— CNBC (@CNBC) October 31, 2024
In the end, Intel’s latest earnings read like a cautionary tale for
tech giants who are finding it hard to keep up with rapid innovation. Where
Intel is busy trimming down and “right-sizing,” Microsoft has long embraced the
forward momentum, diving headfirst into AI and cloud computing and coming out
on top. If Intel’s Q3 report is any indication, the chipmaker has some serious
legwork to do. Meanwhile, Microsoft’s smooth-as-silk earnings suggest that, in
the high-speed world of tech, you either evolve or watch from the sidelines. Microsoft’s
revenue increased 16% year over year for the quarter, according to a statement. Net income rose 11% to $24.67 billion from
$22.29 billion from a year ago.
So, can Intel muscle its way back to relevance, or will it keep playing
catch-up while rivals like Microsoft revel in their lead? For now, the chip
giant might want to take a few notes from Microsoft’s playbook: sometimes, the
best way to survive is to sprint ahead of the pack.
LISTEN NOW: Jim Cramer and Scott Wapner discuss the "Magnificent 7" earnings front: Meta and Microsoft shares under pressure as guidance related to AI overshadowed better-than-expected profits and revenue. Listen and follow the @SquawkStreet podcast here: https://t.co/FZ7yRasmzi pic.twitter.com/gaHNKNaG8R
— CNBC (@CNBC) October 31, 2024
And this rounds up our coverage of big tech's earnings.
For more news around the edges of finance, follow our Trending section.
