Summary
Intel Corporation (INTC) reported a significant year-over-year revenue decline of 14% in 2023, totaling $54.2 billion. This downturn was driven by weakened demand across key segments, including Client Computing Group (CCG), Data Center and AI (DCAI), and Network and Edge (NEX). The company experienced lower unit volumes in its CCG segment, particularly in notebooks, while ASPs saw a slight decrease due to product mix. The DCAI segment was impacted by a softening data center market and reduced server volumes, despite higher ASPs driven by a shift in customer mix. NEX revenue declined substantially as customers worked to reduce inventory levels. Despite the revenue challenges, Intel continued to make substantial investments in its IDM 2.0 strategy, focusing on regaining process technology leadership and expanding its foundry business (IFS). The company invested $16.0 billion in R&D and $25.8 billion in capital expenditures, signaling a commitment to long-term growth and technological advancement. Intel also took steps to optimize its portfolio, including strategic sales of minority stakes in its IMS Nanofabrication business and Mobileye stock, to fund these critical investments.
Financial Highlights
56 data points| Revenue | $54.23B |
| Cost of Revenue | $32.52B |
| Gross Profit | $21.71B |
| R&D Expenses | $16.05B |
| SG&A Expenses | $5.63B |
| Operating Expenses | $21.62B |
| Operating Income | $93.00M |
| Interest Expense | $878.00M |
| Net Income | $1.69B |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 4.19B |
| Shares Outstanding (Diluted) | 4.21B |
Key Highlights
- 1Total net revenue for 2023 was $54.2 billion, a 14% decrease from $63.1 billion in 2022.
- 2Client Computing Group (CCG) revenue decreased by 8% due to lower volumes, partially offset by higher desktop ASPs.
- 3Data Center and AI (DCAI) revenue decreased by 20% driven by lower server volumes in a softening market.
- 4Network and Edge (NEX) revenue saw a significant 31% decrease as customers managed inventory.
- 5Intel invested $16.0 billion in R&D and $25.8 billion in capital expenditures to support its IDM 2.0 transformation and process technology roadmap.
- 6The company continued to make progress on its product roadmap, launching new processors like Intel Core Ultra with integrated NPUs for AI acceleration.
- 7Intel generated $11.5 billion in cash from operations but reported an adjusted free cash flow of $(11.9) billion, reflecting substantial investments.