Intel’s Q3 2023 earnings report reveals a decline in overall revenue by 8%, totaling $14,158 million, compared to the same period last year. However, the net profit stands at $310 million according to GAAP accounting principles.
The Client Computing (PC) business segment generated revenue of $7,867 million, marking a 3% decrease. Meanwhile, the Data Center and AI group experienced a 10% decrease in revenue, amounting to $3,814 million, due to intensified competition in the market as well as a contraction in the overall market. The Network and Edge group witnessed a significant decline of 32% with revenue of $1,450 million. In contrast, Mobileye’s revenue increased by 18% to reach $530 million. Intel foundry, the chip manufacturing service by Intel, nearly quadrupled its revenue, amounting to $311 million.
During the earnings conference with investors, Intel’s CEO, Pat Gelsinger, provided additional insights. He mentioned that despite the development of Arm-based CPUs by competitors NVIDIA and AMD for Windows PCs, he has yet to see any substantial impact. Historically, the market response to Arm with Windows has been lukewarm. However, Intel views this as an opportunity for their Arm chip manufacturing business as well.
TLDR: Intel’s Q3 2023 earnings report showcases an 8% decrease in revenue, totaling $14,158 million, compared to the previous year. Despite intensified market competition, there are positive developments in Mobileye’s revenue and Intel’s Arm chip manufacturing business. CEO Pat Gelsinger remains optimistic about the impact of Arm-based CPUs for Windows PCs, as previous market reception has been limited.