Q3 was another rough quarter for Intel. Everything was down especially the high-margin Data Center Division. The Accelerated Computing and Graphics Group (AXG), headed by Raja Koduri, weathered some heavy losses as well. Netting a quarterly revenue of $185 million, the operating loss jumped to $378 million, a considerable increase over last year’s $222 million deficit. Intel blames the growing inventory reserves for these losses. With that said, the stocks of the A750 and A770 have disappeared from every major retailer.
The Data Center and AI Group, primarily known for the Xeon Scalable processors, suffered from a steep crash. The revenue dropped by 27%, and the operating income was down 99% compared to last year’s quarter. The reason being: Sapphire Rapids-SP ramp-up, reduced demand, and roadmap investments.
The Client Computing Group (CCG) shared a similar fate. The revenue dipped by 17%, while the operating income fell by 54% YoY. Again, the reasons are pretty much the same: The weakening of the PC market, lower profit margins with the Intel 7 process, and investments in future products.