Intel has released its financial results for the fourth quarter of 2023, reporting a robust revenue of $15.4 billion, marking a significant 10 percent increase year-over-year (YoY).
However, Intel’s full-year revenue for 2023 amounted to $54.2 billion, reflecting a 14 percent decline.
The chip giant is anticipating first-quarter 2024 revenue in the range of $12.2 billion to $13.2 billion. Intel’s forecast for Q1 2024, which is significantly lower than its sales in Q4 2023, indicates that the semiconductor giant is still facing crisis due to uncertain demand for its chips used in the traditional server and personal computer markets.
Intel CEO Pat Gelsinger said that the company’s core businesses of PCs and servers were hitting seasonal low demand. Intel no longer gives full-year financial forecasts, but Pat Gelsinger said the company has $2 billion worth of orders for its AI chips and expects better sales later in the year, Reuters news report said.
Business Unit Revenue and Trends:
Client Computing Group (CCG): The CCG business unit reported fourth-quarter revenue of $8.8 billion, showcasing a substantial 33 percent increase compared to the same period in 2022. However, the full-year revenue for CCG was $29.3 billion, representing an 8 percent decrease compared to 2022.
Data Center and AI (DCAI): DCAI reported fourth-quarter revenue of $4.0 billion, reflecting a 10 percent decrease compared to Q4 2022. The full-year revenue for DCAI in 2023 amounted to $15.5 billion, down by 20 percent compared to 2022.
Network and Edge (NEX): NEX reported fourth-quarter revenue of $1.5 billion, marking a 24 percent decrease compared to the same quarter in 2022. The full-year revenue for NEX in 2023 was $5.8 billion, showing a 31 percent decrease compared to 2022.
Mobileye: Mobileye reported fourth-quarter revenue of $637 million, indicating a 13 percent increase compared to Q4 2022. The full-year revenue for Mobileye in 2023 was $2.1 billion, up by 11 percent compared to 2022.
Intel Foundry Services (IFS): IFS reported fourth-quarter revenue of $291 million, demonstrating an impressive 63 percent increase compared to Q4 2022. The full-year revenue for IFS in 2023 was $952 million, marking a substantial 103 percent increase compared to 2022.
Business Highlights:
Intel is steadfast in its commitment to achieving five nodes in four years and reclaiming transistor performance and power performance leadership by 2025. Notably, Intel 3 became the company’s first advanced node offered to IFS customers, showcasing solid performance and yield progression.
In DCAI, the momentum with Intel’s 4th Gen Intel Xeon Scalable processor remains strong, with over 2.5 million units shipped since its introduction in January 2023. The company launched its 5th Gen Intel Xeon processor in the fourth quarter, optimized for AI workloads and providing up to 42 percent higher AI inference performance compared to the industry-leading 4th Gen Intel Xeon processor.
In the client computing segment, Intel introduced the AI PC era with Intel Core Ultra processors built on Intel 4. The company also announced the full Intel Core 14th Gen mobile and desktop processor lineup at CES 2024.
In the network and edge domain, OpenVINO adoption grew by 60 percent sequentially in the fourth quarter. Additionally, collaborations with AT&T, Ericsson, and Cisco are underway to lead in commercial scale Open RAN deployment and advance AI networking solutions.
Mobileye secured production design wins with a major western automaker and announced AI-enhanced software-defined vehicle SoCs. Intel Automotive also disclosed plans to acquire Silicon Mobility, a fabless silicon and software company specializing in power management SoCs focused on EVs, subject to necessary approvals.
