Intel’s 2023 Financial Report Reveals Strong Performance in Fourth Quarter and Full Year

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Intel Corporation reported strong financial results for Q4 and full year 2023, exceeding expectations and achieving revenue at the higher end of their guidance, showcasing the company's ongoing transformation efforts and commitment to operational efficiencies, with plans to continue expanding their external foundry business and regain leadership in transistor performance and power performance by 2025.

Exceeded expectations for fourth consecutive quarter
Achieved revenue at higher end of guidance
Strong momentum for products and focus on achieving process and product leadership

Intel Corporation has just released its financial results for the fourth quarter and full year of 2023. The company reported strong Q4 results, exceeding expectations for the fourth consecutive quarter and achieving revenue at the higher end of their guidance. This positive performance is a testament to Intel’s ongoing transformation efforts, which have focused on driving execution and accelerating innovation.

According to Pat Gelsinger, Intel CEO, the past year has been marked by tremendous progress in Intel’s transformation journey. The company has successfully built strong momentum for its products and is now looking ahead to 2024 with a relentless focus on achieving process and product leadership. Intel aims to continue expanding its external Foundry business, building at-scale global manufacturing capabilities, and driving the adoption of AI across various industries.

David Zinsner, Intel CFO, highlighted the company’s commitment to operational efficiencies, as they comfortably achieved their goal of delivering $3 billion in cost savings in 2023. Looking ahead, Intel expects to unlock further efficiencies in 2024 and beyond by implementing their new internal foundry model. This model is designed to improve transparency, accountability, and generate higher returns on capital for Intel’s stakeholders.

In terms of business unit updates, Intel recently made an organizational change by integrating its Accelerated Computing Systems and Graphics Group into its Client Computing Group and Data Center and AI Group. This strategic move aims to enhance go-to-market capabilities, accelerate business scale, and reduce costs.

Intel remains on track to achieve its goal of five nodes in four years, with plans to regain transistor performance and power performance leadership by 2025. Intel 3, the company’s first advanced node offered to IFS customers, has shown solid performance and yield progression. Intel has also made significant progress in addressing challenges beyond Intel 18A by installing the industry’s first on-site High-NA EUV tool in Oregon.

Intel’s external foundry business, known as IFS, has achieved notable milestones. It secured a key design award with a new high-performance computing customer and won three additional advanced packaging design wins in the fourth quarter. Furthermore, Intel and UMC announced a collaboration to develop a 12-nanometer process platform targeting high-growth markets such as mobile, communication infrastructure, and networking.

In the Data Center and AI Group, Intel’s 4th Gen Intel Xeon Scalable processor continues to gain momentum, with over 2.5 million units shipped since its introduction in January 2023. The group also launched its 5th Gen Intel Xeon processor optimized for AI workloads, delivering up to 42% higher AI inference performance compared to its predecessor. The 5th Gen Intel Xeon has already reached general availability at Alibaba Cloud and is expected to ship with OEMs early next month.

In client computing, Intel introduced the Intel Core Ultra processors, ushering in the era of the AI PC. These processors, built on Intel 4, offer dedicated acceleration capabilities across the CPU, GPU, and NPU, making them highly AI-capable and power-efficient. At CES 2024, Intel launched its full lineup of Intel Core 14th Gen mobile and desktop processors, as well as the new Intel Core mobile processor Series 1 family for performant mainstream thin-and-light mobile systems.

Intel’s network and edge segment saw significant growth in OpenVINO adoption, which increased by 60% sequentially in the fourth quarter. OpenVINO has become a core software layer for AI inference across various platforms. Additionally, AT&T and Ericsson announced plans to lead the U.S. in commercial-scale Open RAN deployment in collaboration with Intel and others, with the aim of having 70% of their wireless network traffic flow across open-capable platforms by late 2026. Cisco is also working with Intel and other partners to advance AI networking solutions.

Mobileye, Intel’s autonomous driving subsidiary, secured a series of production design wins with a major western automaker across its three key platforms: Mobileye SuperVision, Mobileye Chauffeur, and Mobileye Drive. Intel Automotive announced the launch of AI-enhanced software-defined vehicle SoCs, with Geely’s Zeekr brand as its first OEM partner. Additionally, Intel has entered into an agreement to acquire Silicon Mobility, a fabless silicon and software company specializing in power management SoCs for electric vehicles.

Looking ahead, Intel will be hosting its annual flagship foundry event, IFS Direct Connect, on February 21 in SAN Jose, California. The event will showcase Intel’s foundry ecosystem and define the next era of silicon design, development, and manufacturing.

Intel’s board of directors has also declared a quarterly dividend of $0.125 per share on the company’s common stock, payable on March 1, 2024.

Overall, Intel’s financial results for the fourth quarter and full year of 2023 demonstrate the company’s commitment to transformation, innovation, and operational excellence. With a strong focus on achieving process and product leadership and expanding their foundry business, Intel is poised to drive long-term value for its stakeholders.

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Background Information

About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

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Event Info

About CES:

CES, the Consumer Electronics Show, is an annual event held in Las Vegas, Nevada, organized by the Consumer Technology Association (CTA). With a history dating back to 1967, it has become the world's premier platform for unveiling and exploring the latest innovations in consumer electronics and technology. Drawing exhibitors ranging from industry titans to startups across diverse sectors, including automotive, health and wellness, robotics, gaming, and artificial intelligence, CES transforms Las Vegas into a global tech hub, offering a glimpse into the future of technology through a wide array of showcases, from startup-focused Eureka Park to cutting-edge automotive and health tech exhibitions.

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Technology Explained

CPU: The Central Processing Unit (CPU) is the brain of a computer, responsible for executing instructions and performing calculations. It is the most important component of a computer system, as it is responsible for controlling all other components. CPUs are used in a wide range of applications, from desktop computers to mobile devices, gaming consoles, and even supercomputers. CPUs are used to process data, execute instructions, and control the flow of information within a computer system. They are also used to control the input and output of data, as well as to store and retrieve data from memory. CPUs are essential for the functioning of any computer system, and their applications in the computer industry are vast.

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EUV: Extreme Ultraviolet Lithography (EUV or EUVL) is an advanced semiconductor manufacturing technique that employs extremely short wavelengths of light in the extreme ultraviolet spectrum to create intricate patterns on silicon wafers. Utilizing a wavelength around 13.5 nanometers, significantly shorter than traditional lithography methods, EUVL enables the production of smaller and more densely packed integrated circuits, enhancing the performance and efficiency of modern microprocessors and memory chips.

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

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GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.

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SAN: A Storage Area Network (SAN) is a high-speed and specialized network architecture designed to facilitate the connection of storage devices, such as disk arrays and tape libraries, to servers. Unlike traditional network-attached storage (NAS), which is file-based, SAN operates at the block level, enabling direct access to storage resources. SANs are known for their performance, scalability, and flexibility, making them ideal for data-intensive applications, large enterprises, and environments requiring high availability. SANs typically employ Fibre Channel or iSCSI protocols to establish dedicated and fast communication paths between servers and storage devices. With features like centralized management, efficient data replication, and snapshot capabilities, SANs offer advanced data storage, protection, and management options. Overall, SAN technology has revolutionized data storage and management, enabling organizations to efficiently handle complex storage requirements and ensure reliable data access.

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Xeon: The Intel Xeon processor is a powerful and reliable processor used in many computer systems. It is a multi-core processor that is designed to handle multiple tasks simultaneously. It is used in servers, workstations, and high-end desktop computers. It is also used in many embedded systems, such as routers and switches. The Xeon processor is known for its high performance and scalability, making it a popular choice for many computer applications. It is also used in many cloud computing applications, as it is capable of handling large amounts of data and providing high levels of performance. The Xeon processor is also used in many scientific and engineering applications, as it is capable of handling complex calculations and simulations.