Intel Financial Report: Intel's total revenue will drop to $47.7 billion in 2023

Recently, Intel announced that the company's total revenue will drop from $57 billion in 2022 to $47.7 billion in 2023. In terms of departments, the revenue of the data center and AI departments will drop from $16.86 billion in 2022 to $12.64 billion in 2023. The revenue of Intel's wafer foundry will drop from $27.5 billion in 2022 to $18.9 billion in 2023. At the same time, the operating loss of the department is also expanding, from $5.2 billion in 2022 to $7 billion .

Some analysts pointed out that due to market concerns about Intel's short-term performance decline and the prospects of its wafer foundry business , its stock price fell more than 4% after the market, and the cumulative decline since the beginning of the year is 13%.

However, Intel is confident in the company's long-term profitability improvement. Looking ahead, Intel's goal is to achieve an adjusted gross margin of 30% and an adjusted operating margin of 30%. By the end of 2030, Intel hopes to achieve a non-GAAP gross margin of 60% and an adjusted operating gross margin of 40%.

Intel is committed to strategic transformation and entering the foundry business

Intel's move into outsourced chip production (i.e., foundry industry) is one of the biggest transformations in the company's history. In response, Intel is taking a variety of measures such as increasing financial transparency and improving business independence to support the company's strategic transformation.

Intel CEO Pat Gelsinger stressed that the company is committed to providing more detailed financial information to increase external transparency and enhance investor and market confidence in Intel. Intel also announced that Lorenzo Flores has been appointed Chief Financial Officer of Intel Foundry.

In addition, Gelsinger plans to separate the foundry business from the company's other businesses. This move is intended to strengthen Intel Foundry's core strategy of providing foundry services to external customers, marking Intel's transition from its traditional business model of designing and selling its own chips.

Despite the current challenges in the business, Intel is optimistic about the long-term profitability of Intel Foundry. The company expects the operating losses of the foundry business to peak in 2024 and plans to break even between 2024 and 2030.

While Intel is actively transforming, it also faces strong competitors such as TSMC, AMD and Nvidia in the foundry business.

Currently, TSMC dominates the foundry market, and its total revenue has surpassed Intel. In 2023, TSMC's total revenue reached US$69.4 billion, with a net profit of US$26.9 billion and a gross profit margin of 54%. And TSMC expects its total revenue in 2024 to increase by 20% to US$83.4 billion.

Meanwhile, Intel's main competitor in its traditional business is AMD, which will have total revenue of $22.7 billion, net profit of $854 million and a gross profit margin of 50% in 2023. Analysts predict that the company's total revenue will increase by 14% this year.

In addition, Nvidia has quickly risen to become a leader in the industry. Although its revenue has not yet reached TSMC's level, its sales doubled last year and are expected to achieve huge growth again this year. And Nvidia has an overwhelming lead in the AI ​​accelerator market.

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