Intel Corporation today reported first-quarter 2023 financial results. "We delivered solid first-quarter results, representing steady progress with our transformation," said Pat Gelsinger, Intel CEO. "We hit key execution milestones in our data center roadmap and demonstrated the health of the process technology underpinning it. While we remain cautious on the macroeconomic outlook, we are focused on what we can control as we deliver on IDM 2.0: driving consistent execution across process and product roadmaps and advancing our foundry business to best position us to capitalize on the $1 trillion market opportunity ahead."

David Zinsner, Intel CFO, said, "We exceeded our first-quarter expectations on the top and bottom line, and continued to be disciplined on expense management as part of our commitment to drive efficiencies and cost savings. At the same time, we are prioritizing the investments needed to advance our strategy and establish an internal foundry model, one of the most consequential steps we are taking to deliver on IDM 2.0."Business Unit Summary
Intel previously announced the organizational change to integrate its Accelerated Computing Systems and Graphics Group into its Client Computing Group and Data Center and AI Group. This change is intended to drive a more effective go-to-market capability and to accelerate the scale of these businesses, while also reducing costs. As a result, the company modified its segment reporting in the first quarter of 2023 to align to this and certain other business reorganizations. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors operating segment performance starting in fiscal year 2023.

• Client Computing Group (CCG), $5.8 billion, down 38%
• Data Center and AI (DCAI), $3.7 billion, down 39%
• Network and Edge (NEX), $1.5 billion, down 30%
• Mobileye, $458 million, up 16%
• Intel Foundry Services (IFS), $118 million, down 24%

Business Highlights

• Intel continues to be on track to meet its goal of achieving five nodes in four years, with two of the five nodes nearly complete. Intel 7 is in high-volume manufacturing and CCG's Meteor Lake product on Intel 4 is ramping production wafer starts for an expected launch in the second half of 2023. Intel 3, Intel 20A, and Intel 18A remain on track.
• DCAI shipped its 4th Gen Intel Xeon Scalable processors (code-named Sapphire Rapids), a critical part of Intel's heterogeneous hardware and software portfolio to accelerate real-world workloads, including AI, as it looks to truly democratize AI through an open and secure ecosystem approach.
• DCAI also announced it expects to deliver Intel's 5th Gen Xeon Scalable processor, Emerald Rapids, later this year. In addition, the business narrowed the delivery window for Sierra Forest, which is expected to ship to customers in the first half of 2024, with Granite Rapids expected to follow shortly thereafter. Clearwater Forest, the follow-on to Sierra Forest, is expected to ship in 2025, and will be manufactured on Intel 18A, the node designed to achieve process leadership and representing the culmination of the company's five-nodes-in-four-years strategy. Additionally, the Programmable Solutions Group (PSG) had an all-time record revenue quarter in Q1.
• IFS and Arm announced a multigeneration agreement to enable chip designers to build low-power compute system-on-chips (SoCs) on the Intel 18A process. Intel delivered and supplied the first multi-chip package (MCP) prototypes created under the U.S. Department of Defense's State-of-the-Art Heterogeneous Integrated Packaging (SHIP) program to BAE Systems six quarters ahead of schedule, showcasing the company's commitment to customers while further supporting the DOD's mission to return the U.S. to a leading role in the microelectronics ecosystem.
• CCG introduced the 13th Gen Intel Core mobile processor family, led by the launch of the first 24-core processor for a laptop and world's fastest mobile processor. Intel also introduced the new Intel vPro platform powered by the full lineup of 13th Gen Intel Core processors. In 2023, the expansive commercial portfolio is expected to deliver more than 170 notebooks, desktops, and entry workstations from partners including Acer, ASUS, Dell, HP, Lenovo, Fujitsu, Panasonic, and Samsung Electronics.
• NEX launched its 4th Gen Intel Xeon Scalable processors with Intel vRAN Boost, delivering two times the capacity gains generation-over-generation within the same power envelope and up to an additional 20% power savings with integrated acceleration, with extensive industry support from Ericsson, Verizon, Telefonica, and Vodafone, among many others.
• Mobileye continues to grow significantly faster than underlying automotive end-markets, achieving record first quarter revenue.

Business Outlook
Intel's guidance for the second quarter of 2023 includes both GAAP and non-GAAP estimates. Reconciliations between GAAP and non-GAAP financial measures are included below.