Intel isn’t in great shape right now. The tech giant’s Q1 2023 revenues fell 36 percent year-over-year to $11.7 billion – the largest drop recorded by the.
Bottom line: Unlike some tech giants like Microsoft and Google, Intel’s bottom line is hurting this year. The company saw a $2.8 billion loss in Q1 – the worst in its history and a major hit at a time when it is scrambling to pivot towards an open foundry model and protect its future. CEO Pat Gelsinger assumed a lot of risks with the new strategy and believes it will pay off in spades, but we’ll have to wait and see.
Intel isn’t in great shape right now. The tech giant’s Q1 2023 revenues fell 36 percent year-over-year to $11.7 billion – the largest drop recorded by the company in its 55 years of existence. While it did pay dividends of over $1.5 billion, investors are worried about the long-term profitability of the company as its gross margin dropped from 50.4 percent in Q1 to 34.2 percent in the first quarter of this year.
One thing is clear – Intel and Microsoft’s fortunes have been diverging in the past several years in stark contrast to the days of the infamous Wintel empire. The Redmond giant is doing better than most tech giants during an economic storm, and its tech culture and focus have changed a lot in recent years. Meanwhile, Intel has yet to achieve the same transformation despite hopes that Pat Gelsinger’s return to the company would have the same effect as that of Steve Jobs when he went back to Apple.
