Intel Announces Financial Results for the Second Quarter of Fiscal Year 2023
Today, Intel announced its second quarter financial report up to July 1, 2023. After two consecutive quarters of losses, Intel has finally returned to profitability. Both its quarterly revenue and net profit surpassed the highest range indicated by the company itself, and it issued stronger-than-expected guidance for Q3.
According to the financial report, Intel’s second-quarter revenue this year was $12.9 billion, a year-on-year decrease of 15%, but higher than the market’s expected $12.02 billion. Its net profit was $1.473 billion, compared to a net loss of $454 million in the same period last year. The gross profit margin fell by 0.7 percentage points year-on-year to 35.8%. The adjusted gross margin was 39.8%, surpassing the company’s earlier prediction of 37.5%. The adjusted earnings per share were 13 cents, exceeding the market’s expected loss of 3 cents per share.
In a conference call with analysts, Intel CEO Pat Gelsinger stated that the company expects all of its business sectors to remain “persistently weak” until the end of the year, with server chip sales not expected to recover until the fourth quarter. He also noted that cloud computing companies place more emphasis on Graphics Processing Units (GPUs) for artificial intelligence, rather than Intel’s Central Processing Units (CPUs).
Amidst the slump in the semiconductor industry and global weak demand in the PC market, tech titan Intel had been struggling for the past few quarters. Now, however, Intel has finally witnessed a turning point, successfully reversing its losses. Moreover, Intel anticipates a moderate recovery in its performance in the second half of the year. Some analysts believe that Intel’s financial report implies a global improvement in the demand for computer components and the much-anticipated recovery may have already begun. Influenced by these results, Intel’s stock soared nearly 8% in after-hours trading following the release of the financial report.
