Intel Q4 financial report revenue increased by 10%, Q1 outlook is worse than expected

Infineon / Mitsubishi / Fuji / Semikron / Eupec / IXYS

Intel Q4 financial report revenue increased by 10%, Q1 outlook is worse than expected

Posted Date: 2024-01-31

On January 25, Intel released its fourth quarter financial report for fiscal year 2023. The financial report showed that Intel's revenue for this quarter reached US$15.4 billion, a year-on-year increase of 10%, net profit reached US$2.7 billion, and adjusted net earnings per share reached US$0.54. Expected to be $0.45. Because the forecast for the first quarter of fiscal 2024 fell short of analysts' expectations, the company's stock price fell 11.9% on Friday, the largest decline since July 2020.

As of the end of December, full-year revenue for fiscal year 2023 was US$54.2 billion, a year-on-year decrease of 14%. Full-year net profit was US$1.7 billion, down 79% year-on-year.

David Zinsner, Intel's chief financial officer, said: "We continued to improve operating efficiencies in the fourth quarter and easily achieved our commitment of $3 billion in cost savings by 2023. As we implement new plans, Intel expects to further improve our performance in 2024 and beyond." Increased efficiency. An in-house foundry model designed to increase transparency and accountability and higher returns on owner capital.”

Intel expects revenue in the first quarter of 2024 to be US$12.2 billion to US$13.2 billion; Intel's earnings per share in the first quarter are expected to be US$0.25. Intel's forecast outlook is less than expected, mainly as follows: 1. Although some parts of the semiconductor industry are booming due to strong demand for artificial intelligence chips, other server parts, such as central processing units or CPUs manufactured by Intel, do not have the same Momentum; 2. Sales performance in the first quarter of fiscal 2024 will be hit by the weakness of Mobileye. Intel owns a majority stake in the company and the company's programmable chip division.

Intel CEO Pat Gelsinger said that subsequent Gaudi AI chips will generate considerable revenue. This is an AI chip used to generate artificial intelligence software and will be available later this year. The company also launched Core Ultra processors, which will target the emerging AI PC market.

In the field of foundry, there is also new news from Intel. Intel and UMC Taiwan officially announced their cooperation in the development of 12nm on January 25. Research firm TrendForce believes that this cooperation will involve UMC providing diversified technical services, Intel providing ready-made factory facilities, and both parties operating together. Not only does it help Intel transition from IDM to wafer foundry to win a business model, but UMC can flexibly use FinFET production capacity without having to bear huge capital expenditures, and plan a new competitive path from the competition of mature processes. It is a win-win cooperation. .

Pat Gelsinger said that the problems faced in the first quarter are temporary, and the company's performance is expected to resume growth, and the company is still expected to regain its dominance in the processor market. He said that Intel expects global AI PCs to reach 40 million units in 2024, and that both earnings per share and revenue are expected to grow in each quarter of 2024. He also added that Intel's new foundry business will receive $10 billion in orders and will become a sustainably profitable business for Intel starting in 2025.

#Intel #financial #report #revenue #increased #outlook #worse #expected