Intel Posts Its Biggest Loss on Record in Q1 2023: Rock Bottom or a Sinking Ship?

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Intel (NASDAQ: INTC) has now announced its earnings for the first quarter of 2023, broadly beating consensus expectations regarding its top-line and bottom-line metrics.

For the three months that ended on the 31st of March 2023, Intel reported $11.7 billion in non-GAAP revenue. The number exceeded consensus expectations.

(All figures are in billions of dollars)

Here is the performance of Intel's business segments in Q1 2023:

During Q1 2023, Mobileye recorded the highest growth, while Data Center and AI remained the laggard with a growth of -39 percent.

The chart below illustrates the performance of Intel's key business segments against consensus expectations:

(All figures are in billions of dollars)

The following excerpt from the company's earnings release provides supplemental platform revenue information:

Finally, the company earned -$0.04 in EPS (non-GAAP), beating consensus expectations of -$0.16. Intel had guided to a non-GAAP EPS of -$0.15 while announcing its earnings for the fourth quarter of 2022.

Do note that Intel has reported a GAAP loss of $2.8 billion for Q1 2023. In records going back as far as 1993, the company has never reported a GAAP loss of over $687 million, as per the Dow Jones Market Data. The previous record was made in Q4 2017 when the company reported a loss of $687 million. Moreover, Intel has not reported an adjusted quarterly loss since 2009.

Here is Intel's guidance for the second quarter of 2023:

Investors have reacted negatively to Intel's latest earnings release, with the stock currently down around 2 percent in after-hours trading. While the company did exceed