Intel Q3 2024 Earnings: DCAI Saves The Day

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Intel has now announced its earnings for the third quarter of 2024, posting broadly encouraging results relative to Wall Street’s consensus expectations.

Intel (NASDAQ: INTC) Earnings Release For The Third Quarter of 2024

For the three months that ended on the 30th of September, Intel reported $13.284 billion in non-GAAP revenue, beating consensus expectations of $13.04 billion.

Here is the actual performance of Intel’s business segments in Q3 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).

Intel has been trying to tap the thematic AI tailwind by collaborating with IBM to deploy its bespoke Gaudi 3 AI accelerators as a service within IBM Cloud. This initiative aims to attract companies that are seeking to scale their AI workloads in a cost-effective manner. Moreover, Intel is bringing AI capabilities to personal computers (PCs) via its core ultra processors that now support around 100 software vendors and 300 AI models.

Given the fact that Intel’s DCAI segment has beaten Wall Street’s consensus revenue expectations in Q3 2024, it…