Non-GAAP earnings per share were 25 cents higher than Wall Street consensus, while revenue beat by a whopping $1.75 billion. For the full year 2021, Intel now anticipates $77.0 billion in revenue, versus Wall Street estimates of $72.84 billion.
Why INTC shares droppedIntel shares fell 2.19 percent to $62.57 in after-hours trading. At least on the surface, various figures were better than expected, but analysts are concerned about Intel's data center business. Intel's data center group sales came in at $5.6 billion, a shocking 20 percent below Q1 2021's revenue. The lower revenue is a mix of lower unit volume pushed and lower pricing. The number of datacenter processors sold fell 9 percent quarter-over-quarter and 13 percent year-over-year. The rest of the decline came from lower average selling prices (ASPs). Basically, AMD is eating Intel's lunch in the server market.
“Intel delivered strong first-quarter results driven by exceptional demand for our leadership products and outstanding execution by our team. The response to our new IDM 2.0 strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution,” said Pat Gelsinger, Intel CEO. “This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world.”
First-quarter revenue exceeded January guidance by $1.1 billion led by continued, strong PC demand. PC unit volumes were up 38 percent YoY, and notebook volumes set a new Intel record. The company also saw initial recovery of Enterprise and Government sales in the Data Center Group (DCG). Intel also achieved better-than-expected revenue in Internet of Things Group (IOTG) and Mobileye, and Mobileye set a new revenue record in the quarter.
In the first quarter of 2021, Intel shipped new CPU products and announced key customer design wins. The company also completed the CEO transition to Pat Gelsinger who unveiled Intel's new, differentiated IDM 2.0 strategy for manufacturing, innovation and product leadership. -- Intel