Q3 was a particularly harsh quarter for Intel. The chipmaker’s revenue dived for the third consecutive quarter. More importantly, the operating income fell to unprecedented levels. The Data Center and AI Group (DCAI) had its worst quarter, possibly of this century. The revenue was down 27%, dropping from $5.8 billion to $4.2 billion in Q3 2022. The operating income (profit) was an absolute disaster. It was down 99% YoY, plummeting to approximately $0.0B.
Intel is more dependent on its Client Computing Group (CCG) than its rivals. This is because the revenue from consumer offerings can be up to twice as much as the Xeon server lineup. The drop in revenue was milder in this case, but the operating income suffered a heavy blow, sinking by 54% YoY.
Intel has attributed these drops in operating income to the growing investments into future products, most notably advanced process nodes, including 4nm, 20A, and 18A. Reduced consumer/retailer inventory has also hammered Team Blue’s revenue.