Intel announced its fourth quarter 2023 financial report today. Revenue has increased both year-on-year and quarter-on-quarter. After experiencing year-on-year declines for multiple consecutive quarters, it has finally reversed the trend. In the 2023 full-year financial report released at the same time, both revenue and profits fell. Amidst the semiconductor downturn, industry giants are also under tremendous pressure.
Intel's total revenue in the fourth quarter of 2023 was US$15.41 billion, a year-on-year increase of 10% from US$14 billion in the same period last year; net profit was US$2.7 billion, compared with a net loss of US$700 million in the same period last year; gross profit margin It was 45.7%, higher than the 39.2% in the same period last year, and also higher than the gross profit margin of the previous quarter, which was 42.5%; the diluted loss per share was US$0.63, compared with US$0.16 in the same period last year, and US$0.07 in the previous quarter.
If divided by departments, in the fourth quarter of 2023, client computing business (CCG) revenue was US$8.84 billion, a year-on-year increase of 33%, higher than analysts' expectations of US$8.42 billion; data center and artificial intelligence business (DCAI) revenue was US$4 billion, a year-on-year decrease of 10%, low Compared to analysts’ expectations of US$4.08 billion; Network and Edge Business (NEX) revenue was US$1.5 billion, a year-on-year decrease of 24%; Mobileye’s revenue was US$637 million, a year-on-year increase of 13%; Intel Foundry Services (IFS) revenue was US$291 million, a year-on-year increase of 63%.
Intel's total revenue in 2023 will be US$54.2 billion, a year-on-year decrease of 14% compared to last year's US$63.1 billion; gross profit margin dropped to 40%, a decrease of 2.6 percentage points from last year's 42.6%; net profit will be US$1.7 billion, a year-on-year decrease of 79%.
Intel expects revenue in the first quarter of 2024 to be between US$12.2 and US$13.2 billion, lower than the market's average forecast of US$14.25 billion. Gross profit margin will also decline, falling to around 40.7%, and diluted earnings per share will be US$0.25. Such pessimistic performance guidance was significantly lower than market expectations, disappointing investors, and Intel executives also tried to reassure investors on the earnings call.
Intel CEO Pat Gelsinger said that the performance of PC and server chips as the core business is relatively flat, and believes that the weak outlook in the first quarter of 2024 is only temporary, and the momentum of new products and businesses is still strong. It is expected that revenue and earnings per share will achieve continuous year-on-year growth in each quarter this year.