Intel 2022 revenue down 20%

The U.S. semiconductor company's revenue in 2022 decreased 20% from the previous year to $63.1 billion. The chip maker's net profit fell 60% to $8 billion. Analysts called 2022 the worst year for Intel since 2001, when the company's sales fell 21% and profits dropped 88%. Intel's shares have fallen more than 41% in the past year.

The company's revenue in the fourth quarter of 2022 decreased by 32% to $14 billion from the analysts' forecast of $14.5 billion. The last quarterly anti-record was registered by Refinitiv experts in the first three months of 2009 - revenue fell by 26%. The manufacturer's net loss from October to December 2022 was $664 million.

The loss per share was $0.16 against analysts' forecast of $0.20. Intel expects net adjusted loss of $0.15 per share, though analysts expect $0.24.

Experts polled by Reuters attributed Intel's economic performance to a drop in demand in the PC and data centre markets. During the COVID-19 pandemic people were actively moving to telecommuting which boosted markets for two years. However, after restrictions were lifted and employees returned to the offices, revenue from Intel's Client Computing Group and Data Center and AI divisions fell 36 percent and 33 percent to $6.6 billion and $4.3 billion.

Intel is affected by inflation and a general slowdown in the global economy. In the current reality, companies around the world are preparing for a recession: management has already started saving on equipment investments to offset the negative effect caused by inflation. The worsening economic environment is reducing consumer activity.

Intel expects revenue of $10.5-11.5 billion and a net adjusted loss of $0.15 per share from January to March 2023. The company did not provide a full-year forecast. The last time Intel had such low revenue was in one quarter in 2010.

Analysts expect a recovery in Intel's key markets in late 2023. The company is losing market share, which TSMC is actively pursuing. The Taiwanese company's net profit growth was 70%.

Amid the news on Intel's financial performance, the manufacturer's market value fell by $8bn and shares fell by 10%.