Intel announced its second-quarter 2023 earnings yesterday, showing that it has returned to profitability after losing two consecutive quarters. While Intel announced a stronger-than-expected result, stocks started to increase on this occasion. On the other hand, although profits have been made, the serious declines in the company’s revenues continue.Profitability is back
Intel, whose shares rose 7 percent after the announcement of the financial results, generated $12.9 billion in revenue in the second quarter. In the same period last year, the firm had revenue of 15.3 billion, so there is a 15 percent decrease in year-to-year revenues. Additionally, Intel’s revenues have been down for six quarters. Intel’s net income this quarter was $1.5 billion. The company reported a loss of $454 million in the same period last year.
Intel CEO Pat Gelsinger said in a statement that the company saw “continuous weakness” in all business lines through the end of the year and that server chip sales would not recover until the fourth quarter. It was also stated that cloud companies are turning to graphics processors for artificial intelligence instead of Intel’s central processors. Intel’s chief finance officer, David Zinsner, said in a statement that part of the reason the report was stronger than expected is the company’s progress towards cutting $3 billion in costs this year.When we look at Intel’s business units, we see $6.8 billion in revenue, with a 12 percent decline in the revenue of the Client Computing group, which includes laptop and desktop processor shipments. Sales of the server chip division, reported as Data Center and Artificial Intelligence, fell 15 percent to $4 billion, while revenue of the Network and Edge division, which sells network products for telecommunications, fell 38 percent to $1.4 billion. Intel Foundry Services, which makes chips for other companies, reported revenue of $232 million, up 307 percent.
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