From Intel's latest Q3 press release[1], management is guiding towards $63-64B revenue to close FY22, representing -20% decline YoY.
In contrast, from AMD's latest Q3 press release[2], management is guiding towards $23.2-23.8B revenue to close FY22, representing +43% growth YoY.
Underneath the hood, Intel's two biggest segments by huge margin are going down faster than a whore spreading herpes:
- Client Computing segment revenue is down -17.0% QoQ, -18.5% YoY; segment operating income is down -53.9% QoQ, -53.3% YoY.
- Datacenter and AI segment revenue is down -27.2% QoQ, -16.3% YoY; segment operating income is down -99.3% QoQ, -68.5% YoY.
- This quarter, Intel spun off their Mobileye segment and is expected to hold ~94% of MBLY common stock upon IPO. For Q3, this segment's revenue was up +38.0% QoQ, +26.6% YoY; segment operating income was up +11.8% QoQ, +11.4% YoY...we won't be seeing this segment soften Intel's top line decline moving forward.
- Management has made it abundantly clear that they're trying to cauterize deep operating wounds now and over the next few years: "The company is focused on driving $3 billion in cost reductions in 2023, growing to $8 billion to $10 billion in annualized cost reductions and efficiency gains by the end of 2025."
- Next year, Intel will burn ~$5.4B acquiring Tower Semi to advance their IDM 2.0 vision[3]. Prevailing macroeconomic headwinds today and throughout at least the end of next year strongly suggests this will weigh a lot more unfavorably on Intel's balance sheet moving forward given the implied cost of capital went from cheap in February 2022 when the acquisition intent was announced to sky-fucking-high today trending to the moon based on what the futures market has already priced in.
[1] https://www.intc.com/news-events/press-releases/detail/1586/...
[2] https://ir.amd.com/news-events/press-releases/detail/1098/am...
[3] https://www.intc.com/news-events/press-releases/detail/1527/...