Intel Reports Mixed Q4 2023 Results, Shares Tumble on Weak 2024 Outlook

January 26, 2024 – Intel today unveiled its financial results for the fourth quarter of 2023, revealing a mixed bag of outcomes. The tech giant reported revenues of 154.1billionforthequarter,surpassinganalystexpectationsof151.7 billion and marking a 10% year-over-year increase.

Net income for the quarter stood at 27billion,asignificantturnaroundfromthenetlossof7 billion reported in the same period last year. Intel also boasted a gross margin of 48.8%, an increase of 5% from the previous year and 2.3% higher than what analysts had anticipated.

However, the picture was not entirely rosy for Intel. Despite the quarterly gains, the company’s annual revenue for 2023 came in at $542 billion, representing a 14% decline compared to the previous year.

Looking ahead, Intel provided a cautious outlook for the first quarter of 2024, forecasting revenues in the range of 122billionto132 billion. This guidance was well below the average Wall Street analyst prediction of $142.5 billion, sending Intel’s shares tumbling by over 10% in after-hours trading.

The mixed results highlight the challenges facing Intel as it navigates a rapidly evolving technology landscape. While the company has made progress in some areas, such as improving its gross margin and returning to profitability, it still faces significant headwinds in terms of overall revenue growth and meeting market expectations.

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