2023 is over, and while we look ahead to 2024, Intel is releasing its financial results for the past year. Clearly, these are down, all against the backdrop of the economic crisis.
2023: not a great year for Intel!
If we compare Q4 2023 with Q4 2022, Intel comes out on top. Indeed, sales are up, from $14 billion to $15.4 billion. Over the full year, however, figures are less robust, dropping from $63.1 billion to $54.2 billion, a 14% year-on-year decline. All this has a direct impact on profits, which are also revised downwards: $1.7 billion versus $8 billion in 2022, a drop of 79%.
However, if profits are down, it’s also because the company is making investments, notably in its foundry services (IFS, Intel Foundry Services). It’s worth remembering that there’s still a history of foundry plans in Germany (albeit heavily subsidized), but this story seems to be taking on water.
In short, the highlights of the day are as follows:
- Client Computing Group figures are up for Q4 2023 vs. Q4 2022: $8.8 billion vs. $6.6 billion.
- The Data Center and AI Group posted a slight decrease of $400 million in Q4 2023 compared with the same period in 2023.
- Intel Foundry Services also reported higher results: $291 million versus $178 million, but with lower operating revenues due to various investments.
- The Mobileye branch is also up: $637 million versus $565 million in 2022.
- Finally, the Network and Edge Group is down $400 million, with zero operating revenues.
Now, let’s take a closer look at the company’s estimates for the first quarter of 2024. Intel estimates sales of between $12.2 and $13.2 billion for the first quarter.
You can find these figures in detail here.
