A few days ago, Intel announced its financial report for the second quarter of fiscal year 2023. Data show that in the second quarter of 2023, Intel's total revenue was US$12.948 billion, a decrease of 15% compared with US$15.321 billion in the same period last year; net profit was US$1.473 billion, compared with a net loss of US$454 million in the same period last year.
Divided by sector, Intel Client Computing Group's net revenue in the second quarter was US$6.780 billion, compared with US$7.678 billion in the same period last year, a year-on-year decrease of 12%; operating profit was US$1.039 billion, compared with US$876 million in the same period last year. Among them, desktop business revenue was US$2.370 billion, compared with US$2.289 billion in the same period last year; notebook business revenue was US$3.896 billion, compared with US$4.751 billion in the same period last year; other business revenue was US$514 million, compared with US$638 million in the same period last year.
Intel's data center and artificial intelligence group's revenue in the second quarter was US$4.004 billion, compared with US$4.695 billion in the same period last year, a year-on-year decrease of 15%; operating loss was US$161 million, compared with an operating loss of US$80 million in the same period last year.
Intel's network and edge group's revenue in the second quarter was US$1.364 billion, compared with US$2.211 billion in the same period last year, a year-on-year decrease of 38%; operating loss was US$187 million, compared with US$294 million in operating profit in the same period last year.
Mobileye, Intel's autonomous driving division, had revenue of US$454 million in the second quarter, compared with US$460 million in the same period last year, a year-on-year decrease of 1%; operating profit was US$129 million, compared with US$190 million in the same period last year.
In the second quarter, Intel Foundry Services' revenue was US$232 million, compared with US$57 million in the same period last year, a year-on-year increase of 307%; operating loss was US$143 million, compared with US$134 million in the same period last year.
Intel's revenue in the second quarter of 2023 was US$12.9 billion, higher than the market's expected US$12.02 billion; the company expects revenue in the third quarter of fiscal year 2023 to be approximately US$12.9 billion to US$13.9 billion, and the average performance outlook range is 13.4 billion US dollars, exceeding analyst expectations.
Intel is said to have unexpectedly turned a profit, with better-than-expected sales of personal computers and data centers.
Over the past year or so, the global PC market demand has been sluggish, which has also affected the revenue of upstream chip companies. However, according to a report released by Canalys on July 12, the decline in the global PC market has slowed down in the second quarter of 2023, with total shipments of desktops and notebooks falling 11.5% year-on-year to 62.1 million units, but Shipments increased by 11.9% month-on-month.
Intel's better-than-expected personal computer sales in the second quarter also sent a signal that the market recovery is accelerating in the second half of this year. Intel Chief Financial Officer David Zinsner said on the conference call that the increase in profit margins is mainly a function of revenue, and the revenue growth of Intel's client or PC business is much more pronounced than that of the data center business.
Sales of Intel's personal computer unit were $6.8 billion and data center sales were $4 billion, both above the $6.08 billion and $3.8 billion forecasts of analysts polled by FactSet.
Intel plans to incorporate AI into every product
In a subsequent conference call, Intel CEO Pat Gelsinger (Pat Gelsinger) said that Intel is very optimistic about AI and said that Intel plans to incorporate AI into every product it makes in the future.
Pat Gelsinger said: "We see artificial intelligence being injected into everything, artificial intelligence chips for communication infrastructure, artificial intelligence chips for sensing devices, artificial intelligence chips for automotive equipment, etc., we as a product Providers, foundries, and technology providers all have growth opportunities in these areas."
Later this year, Intel will release its next-generation chip, code-named Meteor Lake, the first consumer-grade chip with a built-in neural network processor, which Intel says will be capable of a range of machine-learning tasks to power the future of AI.
Intel has a deep layout in the field of AI, including the previous acquisitions of HabanaLabs, Altera, and Nervana. In the years following the acquisition of HabanaLabs, Intel stepped up efforts to integrate the Habana team with Intel's internal operations. In 2022, the second-generation deep learning chips HabanaGaudi2 and HabanaGreco will be launched for AI training and AI reasoning respectively. Not long ago, Intel also announced that it officially launched the second-generation Gaudi deep learning accelerator - HabanaGaudi2 in the Chinese market.
Intel has a comprehensive chip portfolio in the AI field, including CPUs, GPUs, FPGAs, and AI-specific chips. In addition to hardware, Intel also pays great attention to software optimization. Sandra Rivera, executive vice president of Intel Corporation and general manager of the Data Center and Artificial Intelligence Division, previously stated that Intel is committed to providing customers with a wide range of hardware options and supporting an open software environment. Accelerate the development of artificial intelligence technology.
In this conference call, Pat Gelsinger said that large cloud customers focus on investing in high-end AI training environments, and their budgets also focus on AI infrastructure. In the long run, Intel will still benefit, because this means that the company's server CPUs and AI accelerators will usher in more demand.
Judging from the recent financial reports of various companies, the overall demand in the consumer electronics market, including PCs, is still declining, but the downward trend has slowed down significantly. The industry is relatively optimistic about the situation in the second half of this year. Judging from Intel's situation, although it does not have an advantage in the AI field compared to Nvidia, AMD, etc., it can be seen that Intel attaches great importance to the future development of AI, and Intel is entering the AI market wholeheartedly.
About Intel：
Intel enables designers of electronic systems to rapidly and cost effectively innovate, differentiate, and win in their markets. Intel offers FPGAs, SoCs, CPLDs, and Power Solutions, to provide high-value solutions to customers worldwide.
Intel related information：
Intel partners with Ericsson to customize 5G chips, striving to regain technology leadership
Intel CEO: If China loses orders, it will not build a chip factory in the United States
Germany allocates 20 billion euros to strengthen domestic production of electronic components
Intel related products：
- Memory
- Memory - Configuration Proms for FPGAs
- Memory - Controllers
- PMIC - Hot Swap Controllers
- PMIC - Power Management - Specialized
- PMIC - Power Over Ethernet (PoE) Controllers
- PMIC - Power Supply Controllers, Monitors
- PMIC - Voltage Regulators - DC DC Switching Controllers
- PMIC - Voltage Regulators - DC DC Switching Regulators
- PMIC - Voltage Regulators - Linear
- PMIC - Voltage Regulators - Linear + Switching
- PMIC - Voltage Regulators - Special Purpose
- Specialized ICs