U OK Pat? Asking cos client sales are down, server sales are down, and your forecasts are grim
The company's network and edge business unit — its third largest division and a bright spot for the company in recent quarters — also showed signs of slowing demand during the fourth quarter. The division saw revenues decline one percent year over year to 2.1 billion, marking a stark departure from the double digit gains the group has posted in recent times. Despite the sudden downturn, the division still managed to grow 11 percent during the 2022 fiscal year.
Intel's smaller divisions, including Mobileye and Intel Foundry Services also maintained positive momentum, respectively growing 59 percent and 30 percent during the quarter and 35 percent and 14 percent in during the 2022 fiscal year. Gelsinger and CFO David Zinsner's tried to find positives in Intel's deteriorating numbers. But they struggled to see better days ahead, admitting that stiffer macroeconomic headwinds would make life hard. Investors were told that in Q1 2023 Intel would win $10.5 billion to $11.5 billion in revenues, a 37 percent year-over-year decline in the best-case scenario.
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