The fourth quarter of 2023 was a financial disaster for Intel, but the microprocessor giant experienced a recovery when revenues increased by 10 percent year-over-year (YOY). However, its outlook for the current quarter fell significantly short of expectations, causing a drop in Intel’s stock price.

Intel revealed that it generated a net income of $2.7 billion on revenues of $15.4 billion in the quarter ending December 31, 2023, an increase of 10 percent YOY. Unfortunately, this was the only quarter in which Intel revenues grew in 2023. The full year results were not as positive, with a net income of $1.7 billion, down 79 percent YOY, on revenues of $54.2 billion, down 14 percent.

Intel’s Client Computing Group, responsible for PC chipset sales, achieved $8.8 billion in revenues, a gain of 33 percent YOY. The Data Center and AI business brought in another $4 billion (down 10 percent YOY), while Network and Edge achieved $1.5 billion in revenue (down 24 percent). Intel’s smallest businesses, MobileEye and Intel Foundry Services, reported revenues of $637 million and $291 million, respectively.

Despite these results, Intel did not provide any information about PC sales beyond mentioning that it had released its first Core Ultra processors. Notably, approximately 59 percent of Intel’s PC sales revenues came from portable PCs, with 36 percent from desktop PCs and 5 percent from other sources.

Regarding the current quarter, Intel projected revenues in the $12.2 billion to $13.2 billion range, which were well below expectations. As a result, Intel’s shares fell 6 percent in after-hours trading.

Intel CEO Pat Gelsinger stated, “We delivered strong Q4 results, surpassing expectations for the fourth consecutive quarter with revenue at the higher end of our guidance. The quarter capped a year of tremendous progress on Intel’s transformation, we remain relentlessly focused on achieving process and product leadership, continuing to build our external foundry business and at-scale global manufacturing, and executing our mission to bring AI everywhere as we drive long-term value for stakeholders.”

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