Intel Reports Fourth-Quarter and Full-Year 2023 Financial Results

[btarunr]

Intel Corporation today reported fourth-quarter and full-year 2023 financial results. "We delivered strong Q4 results, surpassing expectations for the fourth consecutive quarter with revenue at the higher end of our guidance," said Pat Gelsinger, Intel CEO. "The quarter capped a year of tremendous progress on Intel's transformation, where we consistently drove execution and accelerated innovation, resulting in strong customer momentum for our products. In 2024, we remain relentlessly focused on achieving process and product leadership, continuing to build our external foundry business and at-scale global manufacturing, and executing our mission to bring AI everywhere as we drive long-term value for stakeholders."

David Zinsner, Intel CFO, said, "We continued to drive operational efficiencies in the fourth quarter, and comfortably achieved our commitment to deliver $3 billion in cost savings in 2023. We expect to unlock further efficiencies in 2024 and beyond as we implement our new internal foundry model, which is designed to drive greater transparency and accountability and higher returns on our owners' capital." For the full year, the company generated $11.5 billion in cash from operations and paid dividends of $3.1 billion.



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.



Business Highlights

• Intel remains on track to meet its goal of achieving five nodes in four years and regain transistor performance and power performance leadership by 2025. Intel 3 became Intel's first advanced node offered to IFS customers, with solid performance and yield progression. Aimed at addressing challenges beyond Intel 18A, Intel began installation of the industry's first on-site High-NA EUV tool in Oregon, one of the world's leading semiconductor innovation and productization centers.
• IFS won a key design award with a new high-performance computing customer, its fourth external Intel 18A customer win in 2023. IFS has taped out more than 75 ecosystem and customers test chips and has more than 50 test chips in the pipeline across 2024 and 2025, 75% of which are on Intel 18A. Intel also won three additional advanced packaging design wins during the fourth quarter. Intel and UMC also announced a collaboration on the development of a 12-nanometer process platform to address high-growth markets, such as mobile, communication infrastructure and networking.
• In DCAI, momentum with Intel's 4th Gen Intel Xeon Scalable processor remains strong, with more than 2.5 million units shipped since its introduction in January 2023. In the fourth quarter, DCAI launched its 5th Gen Intel Xeon processor, which is optimized for AI workloads and provides up to 42% higher AI inference performance compared to the industry-leading 4th Gen Intel Xeon processor. 5th Gen Intel Xeon has reached general availability at Alibaba Cloud, is entering public and private preview with several cloud service providers, and is on track to ship with OEMs early next month.
• In client computing, Intel ushered in the age of the AI PC with Intel Core Ultra processors. Built on Intel 4, the Intel Core Ultra processor is Intel's most AI-capable and power-efficient client processor with dedicated acceleration capabilities across the CPU, GPU and NPU. Intel announced at CES 2024 the full Intel Core 14th Gen mobile and desktop processor lineup, as well as the new Intel Core mobile processor Series 1 family for performant mainstream thin-and-light mobile systems.
• In network and edge, OpenVINO adoption grew by 60% sequentially in the fourth quarter as it became a core software layer for AI inference on the edge, on the PC and in the data center. Additionally, AT&T and Ericsson announced plans to lead the U.S. in commercial scale Open RAN deployment in collaboration with Intel and others as it plans for 70% of its wireless network traffic to flow across open-capable platforms by late 2026. Cisco is working with Intel and others to create solutions including Ethernet technologies, GPU-enabled infrastructure, and jointly tested and validated reference architectures with a commitment to advancing AI networking.
• Mobileye announced that it was awarded a series of production design wins by a major western automaker across the company's three key platforms: Mobileye SuperVision, Mobileye Chauffeur and Mobileye Drive. In addition, Intel Automotive announced the launch of AI-enhanced software-defined vehicle SoCs, with Geely's Zeekr brand as its first OEM partner, and Intel's agreement to acquire Silicon Mobility, a fabless silicon and software company specializing in power management SoCs focused on EVs, subject to necessary approvals. These announcements build on shared IP across client and data center and on Intel's existing SoC footprint of more than 50 million vehicles worldwide.

IFS Direct Connect Event
On Feb. 21, Intel will host its annual flagship foundry event, IFS Direct Connect, in San Jose, California. CEO Pat Gelsinger, Stuart Pann, senior vice president and general manager of Intel Foundry Services, and other leaders will deliver keynotes and news that showcase the breadth of Intel's foundry ecosystem and define the next era of silicon design, development and manufacturing. For information about the event, please visit the event page.

Q1 2024 Dividend
The company announced that its board of directors has declared a quarterly dividend of $0.125 per share on the company's common stock, which will be payable March 1, 2024, to shareholders of record as of Feb. 7, 2024.

Business Outlook
Intel's guidance for the first quarter of 2024 includes both GAAP and non-GAAP estimates. Reconciliations between GAAP and non-GAAP financial measures are included below.





Actual results may differ materially from Intel's Business Outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below. The gross margin and EPS outlook are based on the mid-point of the revenue range.

View at TechPowerUp Main Site

 

[Daven]

Data Center / AI and network / edge groups are way down. Annual revenue of $54B is down and only slightly more than double what AMD will report next week (my estimate is around $23B). Intel is not three times the annual revenue of AMD as some have said and not even close to the over 10x annual revenue back in 2019.

Intel’s peak annual revenue was almost $80B in 2021 and has been dropping ever since. If the rate of loss continues, the company will be almost half that by the end of this year.

Intel is basically a laptop CPU company now with aspirations to be a chip manufacturing giant.

Edit: Intel stock is down almost 12% in after-hours trading. We will see if that corrects after the opening bell.

 

[theouto]

Intel bridge is falling down, falling down, falling down. Intel bridge is falling down, my fair pat gelsinger

 

[john_]

 

[Chrispy_]

Servers are where it's at, and servers is where Intel are so far behind not just AMD, but also ARM.

Modern computing is cloud/datacenter-heavy. Thin clients have won, just not the desktop physical thin client everyone envisaged - the transition from PC+OS to browser+cloud is well underway and many light-duty users can do everything they ever want to do from an iPad or phone.

 

[pressing on]

Data Center / AI and network / edge groups are way down. Annual revenue of $54B is down and only slightly more than double what AMD will report next week (my estimate is around $23B). Intel is not three times the annual revenue of AMD as some have said and not even close to the over 10x annual revenue back in 2019.

Intel’s peak annual revenue was almost $80B in 2021 and has been dropping ever since. If the rate of loss continues, the company will be almost half that by the end of this year.

Intel is basically a laptop CPU company now with aspirations to be a chip manufacturing giant.

Edit: Intel stock is down almost 12% in after-hours trading. We will see if that corrects after the opening bell.

There is a difference between revenue and operating income. It is possible to have less revenue but make more from it. And Intel's desktop sector is still a bit more significant than might be thought.

See below (source: Intel)

 

[Daven]

There is a difference between revenue and operating income. It is possible to have less revenue but make more from it. And Intel's desktop sector is still a bit more significant than might be thought.

See below (source: Intel)

View attachment 331520

Its all about the GPU and AI at the moment. Without a significance presence in either, Intel doesn’t stand a chance in the near term. Its only possible significant source of revenue from the GPU/AI market is to make other companies’ products.

 

[evernessince]

Servers are where it's at, and servers is where Intel are so far behind not just AMD, but also ARM.

Modern computing is cloud/datacenter-heavy. Thin clients have won, just not the desktop physical thin client everyone envisaged - the transition from PC+OS to browser+cloud is well underway and many light-duty users can do everything they ever want to do from an iPad or phone.

That transition has already occurred and desktop has continued to grow regardless. At the end of the day no single form factor has won, only different niches made for different use cases.

 

[tfp]

Its all about the GPU and AI at the moment. Without a significance presence in either, Intel doesn’t stand a chance in the near term. Its only possible significant source of revenue from the GPU/AI market is to make other companies’ products.

Why is everyone so doom and gloom, AMD has been in worse situations and still survived. Intel is still profitable and improving vs the prior year in some areas. They will be around for a long time.

To me the current roadmap set is similar as the P4e and PentiumD transition to Core2. During that transition Intel released a lower perf mobile item that was more power efficient in the form of Pentium M and iterated until they had better CPUs in general. I believe they got stuck on 90nm longer then they expected as well. Sure this situation is different and in many ways worse but they are running a modified game plan that worked before.

 

[thesmokingman]

Hilarious. In case anyone wondered how long the pump on INTC could last since the last few months... apparently not that long.

 

[dyonoctis]

Why is everyone so doom and gloom, AMD has been in worse situations and still survived. Intel is still profitable and improving vs the prior year in some areas. They will be around for a long time.

To me the current roadmap set is similar as the P4e and PentiumD transition to Core2. During that transition Intel released a lower perf mobile item that was more power efficient in the form of Pentium M and iterated until they had better CPUs in general. I believe they got stuck on 90nm longer then they expected as well. Sure this situation is different and in many ways worse but they are running a modified game plan that worked before.

Some people are somehow convinced that Intel kicking the bucket is a good thing, and are waiting for that in anticipation. "It's what they deserve".
Intel being challenged for the first time in a long time, doesn't mean that the company is going to crumble unto itself in the near future. They still have a lot of money backing them up, not to mention that I'm fairly sure that the US gov will not allow the company to go under if that were to happen

 

[thesmokingman]

I'm fairly sure that the US gov will not allow the company to go under if that were to happen

We don't fkn need them to bailout piss poor management like they have with autos, banks, airlines, you name it. They keep throwing billions of tax dollars at these shite companies all because they have had a long history, that's not merit.

Speaking of which Goverment Motors had just been gifted with another bailout loan, which they promptly used on buybacks, insert biggest facepalm here. The previous bailout, the Feds claim they lost 11.2 BILLION FKN dollars on. GM stock has been literally dead money for two decades.

 

[dyonoctis]

We don't fkn need them to bailout piss poor management like they have with autos, banks, airlines, you name it. They keep throwing billions of tax dollars at these shite companies all because they have had a long history, that's not merit.

Speaking of which Goverment Motors had just been gifted with another bailout loan, which they promptly used on buybacks, insert biggest facepalm here. The previous bailout, the Feds claim they lost 11.2 BILLION FKN dollars on. GM stock has been literally dead money for two decades.

I don't think that it's about merit, but more about how the US want to keep a national chip manufacturer. Along with the fact that AMD being alone in the x86 market is not going to be healthy in the long run. Qualcomm hasn't reached a level where they can really be seen as a competitor to AMD. I wouldn't trust a public company to stay sane in that situation.

The same reasoning can be applied to the other industries that you cited: all of them are fairly critical to the US as a superpower. As far as they are concerned, they don't just lose a local company, but local capabilities. Other countries government are also very involved in the business endeavor of companies working in critical areas. Airbus/Boeing going under will make life really hard for the US and the EU

 

[thesmokingman]

I don't think that it's about merit, but more about how the US want to keep a national chip manufacturer. Along with the fact that AMD being alone in the x86 market is not going to be healthy in the long run. Qualcomm hasn't reached a level where they can really be seen as a competitor to AMD. I wouldn't trust a public company to stay sane in that situation.

The same reasoning can be applied to the other industries that you cited: all of them are fairly critical to the US as a superpower. As far as they are concerned, they don't just lose a local company, but local capabilities. Other countries government are also very involved in the business endeavor of companies working in critical areas. Airbus/Boeing going under will make life really hard for the US and the EU

Again, these choices are not done on merit and that's the fkn problem. I don't want too see Joe Biden telling America Mary did it! She electrified America, whilst in reality land GM sold 26 EVs that quarter to Tesla's 400K, and let's not ignore the reality that Tesla cars are 95% American made to GM's 30%.

Often these bailouts go to the company whose greasing the pockets of the Feds. And chip manufacturing... lmao that's the exact reason how INtel found themselves where they are. Do you not get that? Decade of +, +, +++++... lmao. They pushed globalization for decades now realize vertical integration is the way to gap yourself from global issues. The problem is the skill and expertise is not in America anymore. They don't fix the internal educational system that led to this, just throw our tax dollars at the nearest obvious target and hope for the best. This shit never plays out, or pays out.

Hint, GM's bailout costed US tax payers 11.2 BILLION. Get it???

 

[tfp]

Taiwan is no different with TSMC, Japan, China, and Europe are no different with major companies. It's not right but it's now the game is played. I agree with the auto manufactures they should not have been bailed out but votes matter.

The argument is jumping the gun with Intel.

 

[dyonoctis]

Again, these choices are not done on merit and that's the fkn problem. I don't want too see Joe Biden telling America Mary did it! She electrified America, whilst in reality land GM sold 26 EVs that quarter to Tesla's 400K, and let's not ignore the reality that Tesla cars are 95% American made to GM's 30%.

Often these bailouts go to the company whose greasing the pockets of the Feds. And chip manufacturing... lmao that's the exact reason how INtel found themselves where they are. Do you not get that? Decade of +, +, +++++... lmao. They pushed globalization for decades now realize vertical integration is the way to gap yourself from global issues. The problem is the skill and expertise is not in America anymore. They don't fix the internal educational system that led to this, just throw our tax dollars at the nearest obvious target and hope for the best. This shit never plays out, or pays out.

Hint, GM's bailout costed US tax payers 11.2 BILLION. Get it???

I agree that it's a multifold problem, but bleeding edge chip manufacturing isn't something into which a brand-new company will be able to jump into without already having a few billions in the bank and clients. IF intel foundry die, and isn't at least bought by someone else, it's most likely gone forever. There's a very good reason as to why the EU would rather give money to Intel and TSMC to build a few foundries there rather than try and make a European foundry from the ground up. EU taxpayer are giving money to foreign companies.

Global foundry balling out on bleeding edge was already a blow, the more dependent from TSMC we become, the less likely we'll see them try to price their wafer at a competitive price. ASML is already pricing their machines to the moon, because there's literally no one else that can compete with them.

With the chip act, taxpayers are giving money to Samsung, TSMC and Intel. The US isn't being obsessively patriotic, but they don't want to become totally dependent from South Korea and Taiwan either.

And big shock, but from what we're hearing from TSMC us atm, there's a cultural shock about the work culture, Americans seems to have trouble with the Taiwanese way of doing things, it's not just about talent, Asian countries don't work like westerners do, work/life balance means laziness and lack of commitment to them. TSMC boss complained that the workers lack passion, meanwhile the reviews of the workplace are pretty negative.

IMHO, Intel mistake was to take too long to realize that a vertically integrated foundry wasn't going to be sustainable, and they needed to make their foundry open sooner.


About GM vs Tesla, GM doesn't just make civil cars, they make military vehicles as well. I don't think that the current Tesla would be able to handle that kind of stuff, they already struggled with the Cybertruck, so imagine asking them to make a tank ready for combat ? GM doesn't get a bailout for the Chevy bolt, but because the US need combat vehicles. It's the same reason as to why Boeing will never go under, the NASA need them. The EU use Boeing for commercial flight, but space stuff ? It's all about Airbus, they don't want the US to be too involved in those matters.

 

[thesmokingman]

Spoiler: not much to debate

I agree that it's a multifold problem, but bleeding edge chip manufacturing isn't something into which a brand-new company will be able to jump into without already having a few billions in the bank and clients. IF intel foundry die, and isn't at least bought by someone else, it's most likely gone forever. There's a very good reason as to why the EU would rather give money to Intel and TSMC to build a few foundries there rather than try and make a European foundry from the ground up. EU taxpayer are giving money to foreign companies.

Global foundry balling out on bleeding edge was already a blow, the more dependent from TSMC we become, the less likely we'll see them try to price their wafer at a competitive price. ASML is already pricing their machines to the moon, because there's literally no one else that can compete with them.

With the chip act, taxpayers are giving money to Samsung, TSMC and Intel. The US isn't being obsessively patriotic, but they don't want to become totally dependent from South Korea and Taiwan either.

And big shock, but from what we're hearing from TSMC us atm, there's a cultural shock about the work culture, Americans seems to have trouble with the Taiwanese way of doing things, it's not just about talent, Asian countries don't work like westerners do, work/life balance means laziness and lack of commitment to them. TSMC boss complained that the workers lack passion, meanwhile the reviews of the workplace are pretty negative.

IMHO, Intel mistake was to take too long to realize that a vertically integrated foundry wasn't going to be sustainable, and they needed to make their foundry open sooner.

About GM vs Tesla, GM doesn't just make civil cars, they make military vehicles as well. I don't think that the current Tesla would be able to handle that kind of stuff, they already struggled with the Cybertruck, so imagine asking them to make a tank ready for combat ? GM doesn't get a bailout for the Chevy bolt, but because the US need combat vehicles. It's the same reason as to why Boeing will never go under, the NASA need them. The EU use Boeing for commercial flight, but space stuff ? It's all about Airbus, they don't want the US to be too involved in those matters.

This last part is ridiculous. GM Defense is not GM Automotive. Biden recently gave them another $2.5 billion for BATTERIES not for Defense. Don't link these two with BS. And to suggest Tesla had trouble with the Cybertruck, now you are just straight trolling. The Cybertruck is the single most advanced vehicle this country has ever produced. And your BS assumption that Tesla can't a defense project ignoring the fact that they are not in the defense industry, is straight just making up BULLSHIT. The man running Tesla also is the Chief Engineer at SpaceX. Hello, yea SpaceX the company making Boeing look like CLOWNS. Who saves this country from billions being pumped into Russia because the NASA can't build a rocket? This shit is hilarious, smh. Don't get me started on the failboat that is Boeing's Starliner.

 

[dyonoctis]

This last part is ridiculous. GM Defense is not GM Automotive. Biden recently gave them another $2.5 billion for BATTERIES not for Defense. Don't link these two with BS. And to suggest Tesla had trouble with the Cybertruck, now you are just straight trolling. The Cybertruck is the single most advanced vehicle this country has ever produced. And your BS assumption that Tesla can't a defense project ignoring the fact that they are not in the defense industry, is straight just making up BULLSHIT. The man running Tesla also is the Chief Engineer at SpaceX. Hello, yea SpaceX the company making Boeing look like CLOWNS. Who saves this country from billions being pumped into Russia because the NASA can't build a rocket? This shit is hilarious, smh. Don't get me started on the failboat that is Boeing's Starliner.

I mean, you said that GM was getting a bailout, not just GM automotive. From what I read, in 2009 GM as a whole was about to get under. GM defense got a few Chevy branded cars and a few EV, so that money will impact defense vehicles as well. But If GM defense was never in danger then yhea, the argument is moot. For me, that was the only reason for GM to get favoritism over Tesla who's just a civil vehicle company.

I'm not lying about the Cybertruck. IT WASN'T a walk in a park for them. The manufacturing method that they chose is giving them trouble, the car is not only more expensive than expected, the quantity are limited as well. Tesla is very good at software and EV performance, but the manufacturing part is something that they are still figuring out, even on the simpler cars. To this day, I'm still seeing news article talking about how tesla really to up its game on that area. SpaceX is SpaceX, tesla manufacturing doesn't seem to be "space grade" at the moment . I admire the "cojones" that they had for the Cybertruck, but it would do them some good to show a strong commitment to shut the media up about tesla cars not being well manufactured.

 

[thesmokingman]

I mean, you said that GM was getting a bailout, not just GM automotive. From what I read, in 2009 GM as a whole was about to get under. GM defense got a few Chevy branded cars and a few EV, so that money will impact defense vehicles as well. But If GM defense was never in danger then yhea, the argument is moot. For me, that was the only reason for GM to get favoritism over Tesla who's just a civil vehicle company.
View attachment 331628

I'm not lying about the Cybertruck. IT WASN'T a walk in a park for them. The manufacturing method that they chose is giving them trouble, the car is not only more expensive than expected, the quantity are limited as well. Tesla is very good at software and EV performance, but the manufacturing part is something that they are still figuring out, even on the simpler cars. To this day, I'm still seeing news article talking about how tesla really to up its game on that area. SpaceX is SpaceX, tesla manufacturing doesn't seem to be "space grade" at the moment . I admire the "cojones" that they had for the Cybertruck, but it would do them some good to show a strong commitment to shut the media up about tesla cars not being well manufactured.

You are literally regurgitating diarrhea that is spouted by MSM. This is your second shot at trolling. Specs change from prototype to production all the fkn time. Only trolls like you selectively hold entities you're trolling to a standard that doesn't exist. Like for ex. when GM said they'd catch or beat Tesla by 2023 and they did the exact opposite, nope nothing. The CT is a little more expensive than projected when announced but Tesla build cars they want to build. And with the CT it ended up having a crap ton of first for the industry, 48volt low voltage system, true steer by wire, the martensitic stainless panels, etc etc. And you foolish trolling to make all that become a negative. Like seriously, this is where you fkn go?

And SpaceX and Tesla teams pull from each other especially material sciences which the CT is chock full of new invented materials. Even the wheel covers are a new composite. They even took regular austenitic stainless and cold form hardden it into martensitic, but your just a troll who googles trollish shit so that wouldn't be any clue of high level expertise. Like SpaceX had nothing to do with this truck, lmao. SpaceX whom has the most experience with stainless on this continent at least. The giga press that Tesla pioneered is not being copied by the industry right? And on that point, they just mad flexed on everyone cuz they managed to cast the front casting with just a 6 ton press, the same one used on the model y. But lol, these ddon't know manufacturing lmao. Step up their game... you sound like a muppet on CNBS.

 

[mb194dc]

Full year revenue down 14% on 2022, ugly. Wouldn't surprise me if this year is similar. Few stocks might suffer 2000 style crashes if results don't meet the hype.

 

[dyonoctis]

You are literally regurgitating diarrhea that is spouted by MSM. This is your second shot at trolling. Specs change from prototype to production all the fkn time. Only trolls like you selectively hold entities you're trolling to a standard that doesn't exist. Like for ex. when GM said they'd catch or beat Tesla by 2023 and they did the exact opposite, nope nothing. The CT is a little more expensive than projected when announced but Tesla build cars they want to build. And with the CT it ended up having a crap ton of first for the industry, 48volt low voltage system, true steer by wire, the martensitic stainless panels, etc etc. And you foolish trolling to make all that become a negative. Like seriously, this is where you fkn go?

And SpaceX and Tesla teams pull from each other especially material sciences which the CT is chock full of new invented materials. Even the wheel covers are a new composite. They even took regular austenitic stainless and cold form hardden it into martensitic, but your just a troll who googles trollish shit so that wouldn't be any clue of high level expertise. Like SpaceX had nothing to do with this truck, lmao. SpaceX whom has the most experience with stainless on this continent at least. The giga press that Tesla pioneered is not being copied by the industry right? And on that point, they just mad flexed on everyone cuz they managed to cast the front casting with just a 6 ton press, the same one used on the model y. But lol, these ddon't know manufacturing lmao. Step up their game... you sound like a muppet on CNBS.

My last message about this: I dunno about msm and CNBS, French medias like Le monde mention the QC issues that teslas got on their regular cars. QC issues that are less common on other premium brands. Citroën got glaring QC issues as well, but it's a cheap brand that doesn't compete with Lexus, Audi or even Porsche to an extent(I'm not saying that those brands never had issues, but you don't see article about their issues as often) . You won't able to call it French bad-mouthing, since French media also talks about the issues that French cars have. If they are lying about Tesla, then they are lying about every single car that they talk about. Call me a retard if you want, but Le Monde is a news outlet that I trust, clickbait isn't their things. Their coverage of news is among the most neutral that I've seen, even on very delicate matters. Now this is not just about Tesla, but questioning the journalistic integrity of any news outlet that talks about the problems that cars encounters. If what I'm reading is wrong, then it's a case for defamation.

I was wrong to use the Cybertruck as an example, since it's bleeding edge. I said that admire how balsy Telsa was with the cybertruck, but the people working there said themselves that they were caught off guard by some aspect of the production that worked well on a small scale, but aren't that great once you try you to scale up.

But even as a French, Tesla is praised for their software, their range, how insanely quick their car can be, matching or beating some sport cars. But the manufacturing QC is always the one thing that is being criticized.