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Intel announced its fourth-quarter revenue at $15.4 billion, a 10% increase from the previous year, but the stock dropped due to a lower forecast for the first quarter. The full year’s revenue for 2023 was $54.2 billion, representing a 14% decrease from the previous year. In the fourth quarter, earnings per share (EPS) were 63 cents, while non-GAAP EPS was 54 cents. For the full year, EPS stood at 40 cents, with non-GAAP EPS at $1.05.
Intel forecasts its first-quarter 2024 revenue to be between $12.2 billion and $13.2 billion, projecting EPS at 25 cents and non-GAAP EPS at 13 cents. This is below analysts’ expectations of 34 cents per share due to challenges in divisions like Mobileye, according to CEO Pat Gelsinger. However, Gelsinger believes this is a temporary setback.
Reflecting on 2023, Gelsinger stated that the company achieved its goals and more, and aims to continue this momentum into 2024. He emphasized that the fourth-quarter results were strong, with revenues at the high end of their guidance range. Intel exited five business areas in 2023 and met its cost-saving target of $3 billion.
In Q4, Intel’s Client Computing Group (CCG) reported revenues of $8.8 billion, a 33% increase from the previous year. The Data Center and AI (DCAI) group saw a 10% decrease in revenue, totaling $4 billion. The Network and Edge (NEX) group reported $1.5 billion in revenue, down 24%, and Mobileye’s revenue increased by 13% to $637 million. Intel Foundry Services (IFS) reported a 63% increase, with revenue of $291 million.
Gelsinger reflected on 2023 as a year of significant progress towards Intel’s IDM 2.0 transformation. The company made strides in process leadership, capacity building, and foundry plans while improving product execution and advancing its mission to integrate AI across its products.
Intel achieved progress on its manufacturing goals, aligning with its plan to establish leadership in transistor performance and power efficiency by 2025. The Intel 3 manufacturing technology is now available to Intel Foundry Services customers, and the company has initiated its first on-site High-NA EUV tool in Oregon. IFS secured a significant design win, marking its fourth external Intel 18A customer.
The rapid adoption of AI across industries has been advantageous for Intel Foundry Services, with the company making significant advancements in its foundry ecosystem. Intel has also entered into a notable agreement with UMC to develop a 12-nanometer process platform for high-growth markets.
In the fourth quarter, Intel’s data center and AI division launched the 5th Gen Intel Xeon processor, optimized for AI workloads and delivering up to 42% higher AI inference performance compared to its predecessor. Gelsinger highlighted that AI workload is expected to be a crucial driver of the semiconductor market, projecting a total available market (TAM) of $1 trillion by 2030.
Intel anticipates shipping roughly 40 million AI PCs in 2024, with over 230 designs for ultra-thin PCs and handheld gaming devices planned for release by OEM partners. The company also introduced the Intel Core Ultra processors and showcased its full 14th Gen mobile and desktop processor lineup at CES 2024.
For the full year, Intel generated $11.5 billion in cash from operations and distributed $3.1 billion in dividends. Gelsinger expressed optimism about the market in 2024, foreseeing growth in both revenue and EPS for each quarter. The CEO also emphasized the strong momentum and enthusiasm surrounding Intel’s new products and business ventures.