Analysis of Reportable Segments
Intel Corp. operates in 4 segments: Client Computing Group (CCG); Data Center and AI (DCAI); Network and Edge (NEX); and Intel Foundry.
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- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Segment Profit Margin
Intel Corp., profit margin by reportable segment
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Client Computing Group (CCG) | |||||
| Data Center and AI (DCAI) | |||||
| Network and Edge (NEX) | |||||
| Intel Foundry |
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Client Computing Group (CCG)
- The profit margin for the Client Computing Group shows a consistently positive and improving trend from 2022 to 2024. It increases from 25.83% in 2022 to 32.51% in 2023, and further to 36.05% in 2024, indicating enhanced profitability and possible operational efficiencies or market strength in this segment.
- Data Center and AI (DCAI)
- The Data Center and AI segment exhibits a declining profit margin over the observed period. Starting at 24.91% in 2022, the margin decreases significantly to 12.82% in 2023 and further to 10.44% in 2024, suggesting increasing costs, pricing pressures, or competitive challenges affecting profitability.
- Network and Edge (NEX)
- The Network and Edge segment's profit margin presents an inconsistent pattern with an initial drop followed by a notable recovery. It declines from 18.22% in 2022 to 3.53% in 2023, then rebounds significantly to 15.94% in 2024. This volatility may reflect restructuring efforts, market fluctuations, or changing demand dynamics.
- Intel Foundry
- The Intel Foundry segment shows a persistent and deepening negative profit margin trend over the three years. The margin deteriorates from -18.8% in 2022 to -36.78% in 2023 and further to -76.43% in 2024. This indicates substantial losses that are increasing in magnitude, potentially due to high investment costs, operational inefficiencies, or market challenges.
Segment Profit Margin: Client Computing Group (CCG)
Intel Corp.; Client Computing Group (CCG); segment profit margin calculation
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × ÷ =
- Operating Income (Loss)
- The operating income for the period indicates a positive and increasing trend starting from the year ending December 30, 2023, with a value of 8,207 million US dollars. This figure rose to 9,513 million US dollars the following year and further increased to 10,920 million US dollars by the year ending December 28, 2024. This consistent growth suggests improving operational efficiency and profitability within the segment over the observed period.
- Net Revenue
- Net revenue experienced a decline from 31,773 million US dollars in the year ending December 30, 2023, to 29,258 million US dollars in the year ending December 28, 2024. However, there was a subsequent slight recovery, with net revenue increasing to 30,290 million US dollars by the end of the final period observed. Despite this partial rebound, the trend shows some volatility and a below-peak revenue level relative to the initial figure within the timeframe.
- Segment Profit Margin
- The segment profit margin demonstrated a consistent upward trajectory throughout the periods analyzed. Starting at 25.83% in the year ending December 30, 2023, it increased to 32.51% the following year and further improved to 36.05% by the year ending December 28, 2024. This rising margin indicates enhanced profitability and better cost management, reflecting stronger earnings relative to the segment’s revenue despite fluctuations in net revenue.
- Summary
- The analyzed segment shows a clear pattern of increasing profitability, as evidenced by rising operating income and profit margins, even as net revenue dips initially before a modest recovery. The improvement in profit margins implies effective management of operating expenses and an ability to generate higher returns from the segment’s revenue base. The financial performance suggests a strengthening competitive position within the client computing segment over the most recent years assessed.
Segment Profit Margin: Data Center and AI (DCAI)
Intel Corp.; Data Center and AI (DCAI); segment profit margin calculation
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × ÷ =
The Data Center and AI (DCAI) segment exhibits a clear downward trajectory in key financial metrics over the observed period from 2022 through 2024.
- Operating Income (Loss)
- Operating income was recorded at $4,198 million in 2022, followed by a significant decline to $1,620 million in 2023, and further decreased to $1,338 million in 2024. This trend indicates a substantial reduction in profitability within the segment over these years.
- Net Revenue
- Net revenue declined from $16,856 million in 2022 to $12,635 million in 2023, reflecting a considerable drop in sales or service income. The revenue stabilized somewhat in 2024, registering a slight increase to $12,817 million, but it remained markedly lower than the 2022 peak.
- Segment Profit Margin
- The profit margin decreased sharply from 24.91% in 2022 to 12.82% in 2023 and continued a gradual decline to 10.44% in 2024. This downward pressure on profitability margins suggests increasing cost challenges or pricing pressures within the segment, impacting overall margin performance.
Overall, the DCAI segment has experienced a notable contraction in both revenue and profitability across the examined timeframe, coupled with margin compression. These patterns may warrant further analysis into operational efficiencies, cost structures, market conditions, or competitive dynamics affecting this segment.
Segment Profit Margin: Network and Edge (NEX)
Intel Corp.; Network and Edge (NEX); segment profit margin calculation
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × ÷ =
The segment data for the specified period reveals several key trends in financial performance.
- Net revenue
- Net revenue experienced a significant decline from 8,409 million US dollars in 2022 to 5,774 million US dollars in 2023, representing a substantial drop. In 2024, there was a slight increase to 5,842 million US dollars, suggesting some recovery but remaining well below the 2022 level.
- Operating income (loss)
- Operating income showed a marked decrease from 1,532 million US dollars in 2022 to 204 million US dollars in 2023. In 2024, operating income rebounded to 931 million US dollars, indicating partial recovery but still below the 2022 figure.
- Segment profit margin
- The segment profit margin mirrored the decline in revenue and operating income, dropping sharply from 18.22% in 2022 to 3.53% in 2023. By 2024, the margin improved considerably to 15.94%, though it did not return to the level observed in 2022.
Overall, the data shows a period of financial contraction for the segment in 2023, with significant declines in revenue, operating income, and profit margin. The subsequent year, 2024, demonstrates signs of recovery across all these metrics, but performance remains below the peak levels observed in 2022.
Segment Profit Margin: Intel Foundry
Intel Corp.; Intel Foundry; segment profit margin calculation
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × ÷ =
- Operating Income (Loss)
- The operating income exhibited a consistently negative trend over the observed periods. Starting from an unreported value in the earlier years, the segment reported an operating loss of $5,169 million in 2022. This loss further increased to $6,955 million in 2023 and substantially widened to $13,408 million by 2024. The trend reveals a deteriorating profitability, indicating rising operational challenges or increased costs without corresponding revenue growth.
- Net Revenue
- Net revenue data was not reported until 2022, when it was recorded at $27,491 million. Following this peak, revenue declined to $18,910 million in 2023 and further to $17,543 million in 2024. This downward trend in revenue highlights a shrinking sales base or reduced demand within the segment during this period.
- Segment Profit Margin
- The segment profit margin corroborates the findings from the income and revenue data. Initially unreported, the margin stood at -18.8% in 2022, signifying losses relative to revenue. It sharply declined to -36.78% in 2023 and further deteriorated to -76.43% in 2024. This significant negative margin indicates escalating inefficiencies or cost pressures, with losses deepening disproportionately compared to revenue.
- Summary
- The segment exhibits a clear pattern of financial stress marked by increasing operating losses and shrinking revenue over the last three recorded years. While revenues decreased steadily after 2022, losses in operating income and profit margin accelerated, suggesting challenges in managing operational costs or market conditions. The steep decline in profit margin particularly signals critical profitability issues that may require strategic review.
Net revenue
Intel Corp., net revenue by reportable segment
US$ in millions
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Client Computing Group (CCG) | |||||
| Data Center and AI (DCAI) | |||||
| Network and Edge (NEX) | |||||
| Intel Products | |||||
| Intel Foundry | |||||
| All other | |||||
| Intersegment Eliminations | |||||
| Total Consolidated |
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
The financial data reveals several notable trends within the segmented net revenues over the recent years.
- Client Computing Group (CCG)
- This segment experienced a revenue peak at 31,773 million USD followed by a decline to 29,258 million USD and a slight recovery to 30,290 million USD. Overall, the trend indicates a moderate contraction followed by stabilization.
- Data Center and AI (DCAI)
- Revenue in this segment showed a downward trend, decreasing from 16,856 million USD to 12,635 million USD and then slightly increasing to 12,817 million USD. Despite the small uptick near the end, the overall trajectory is a significant decline.
- Network and Edge (NEX)
- The segment saw a substantial decrease from 8,409 million USD down to 5,774 million USD, with a marginal increase to 5,842 million USD afterward. This pattern suggests a sharp contraction followed by a leveling off.
- Intel Products
- Aggregate revenue from Intel Products clearly declined from 57,038 million USD to 47,667 million USD, with a slight rise to 48,949 million USD in the last period. The data indicates a notable reduction with some degree of recovery.
- Intel Foundry
- This segment demonstrated a significant downward trend, with revenues shrinking from 27,491 million USD to 18,910 million USD and further down to 17,543 million USD. The consistent decrease points to ongoing challenges or strategic shifts adversely affecting revenue.
- All other
- The "All other" category maintained levels around 5,500 million USD with a slight increase from 5,530 million USD to 5,608 million USD, before falling considerably to 3,824 million USD, indicating a possible divestiture or diminished operations.
- Intersegment Eliminations
- The magnitude of intersegment eliminations decreased from -27,005 million USD to -17,957 million USD and then to -17,215 million USD. This reduction may reflect changes in internal transactions among segments, possibly linked to overall lower segment revenues.
- Total Consolidated
- The total consolidated net revenue declined from 63,054 million USD to 54,228 million USD and further to 53,101 million USD, marking a steady contraction in overall revenue. This trend suggests that despite some pockets of stabilization or minor recovery within segments, the company's aggregate revenue has been under pressure.
In summary, the data depicts a general contraction across several key business segments, with Client Computing showing relative resilience and modest recovery. Other segments, especially Intel Foundry and Data Center and AI, face notable revenue declines. The decrease in intersegment eliminations aligns with the overall reduction in segment revenues, culminating in a steady decrease in total consolidated revenue over the analyzed periods.
Operating income (loss)
Intel Corp., operating income (loss) by reportable segment
US$ in millions
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | |
|---|---|---|---|---|---|
| Client Computing Group (CCG) | |||||
| Data Center and AI (DCAI) | |||||
| Network and Edge (NEX) | |||||
| Intel Products | |||||
| Intel Foundry | |||||
| All other | |||||
| Corporate Unallocated | |||||
| Intersegment Eliminations | |||||
| Total Consolidated |
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Client Computing Group (CCG)
- The operating income for the Client Computing Group shows a consistent upward trend over the observed periods, increasing from 8,207 million US dollars in late 2021 to 10,920 million US dollars by the end of 2024. This indicates steady growth and improving profitability within this segment.
- Data Center and AI (DCAI)
- This segment experiences a significant decline in operating income, dropping sharply from 4,198 million US dollars in 2021 to 1,338 million US dollars in 2024. The sharpest decrease occurs between 2021 and 2022, suggesting diminished profitability or increased costs in this area.
- Network and Edge (NEX)
- The Network and Edge segment displays a volatile trend with a high of 1,532 million US dollars in 2021, plunging to 204 million in 2023, then rebounding to 931 million in 2024. Despite the rebound, the 2024 figure remains substantially below the 2021 level, indicating instability and challenges within this segment.
- Intel Products
- The Intel Products segment exhibits a downward trend from 13,937 million US dollars in 2021 to 11,337 million in 2023, followed by a recovery to 13,189 million in 2024. This pattern suggests a temporary decline in profitability with signs of improvement in the most recent period.
- Intel Foundry
- The Intel Foundry segment consistently reports operating losses, which deepen considerably over time. The loss escalates from -5,169 million US dollars in 2022 to -13,408 million in 2024, reflecting increasing expenses or operational challenges within the foundry business.
- All other
- The "All other" category shows relatively stable operating income around 1,174 million and 1,079 million in 2022 and 2023 respectively, but declines sharply to a slight loss of 84 million in 2024. This indicates emerging issues or reduced contributions from miscellaneous segments or activities.
- Corporate Unallocated
- Corporate Unallocated expenses demonstrate a reduction in loss from -5,633 million in 2022 to -5,165 million in 2023, followed by a significant increase to -11,218 million in 2024. The sharp increase in losses in 2024 may suggest amplified corporate-level costs or impairments.
- Intersegment Eliminations
- Intersegment Eliminations decline substantially over the periods, from -1,975 million in 2022 to -157 million in 2024. The decreasing magnitude suggests less intersegment accounting adjustments or a change in segment reporting structure.
- Total Consolidated
- The total consolidated operating income reflects a marked downward trajectory, contracting from 2,334 million US dollars in 2022 to a loss of 11,678 million US dollars in 2024. This significant deterioration is driven primarily by increased losses in Intel Foundry and Corporate Unallocated segments combined with declines in other key segments.