Intel Revenues Fell 32 Percent in Q4

Intel released its latest quarterly earnings report and it is predictably bad news, with a 32 percent drop in revenues year-over-year (YOY).

In the quarter ending December 31, 2022, Intel earned a loss of $700,000 on revenues of $14 billion. Those figures represent YOY drops of 114 percent and 32 percent, respectively. For the full year 2022, Intel posted net earnings of $8 billion (down 60 percent) on revenues of $63.1 billion (down 20 percent).

“Despite the economic and market headwinds, we continued to make good progress on our strategic transformation in Q4, including advancing our product roadmap and improving our operational structure and processes to drive efficiencies while delivering at the low end of our guided range,” Intel CEO Pat Gelsinger said. “In 2023, we will continue to navigate the short-term challenges while striving to meet our long-term commitments, including delivering leadership products anchored on open and secure platforms, powered by at-scale manufacturing and supercharged by our incredible team.”

Intel’s two biggest businesses both experienced double-digit revenue shortfalls in the quarter. The Client Computing Group, which produces the chipsets that Intel sells to PC makers, saw revenues fall 36 percent, to $6.6 billion. And the Data Center and AI group experienced a 33 percent drop to $4.3 billion in revenues.

That’s bad, but the future is bleak as well: Intel said it expects to lose money in the current quarter too, thanks to what it sees as an ongoing implosion in the PC market. Mr. Gelsinger predicted that Intel would experience “literally some of the largest inventory corrections that we’ve ever seen in the industry” this quarter.