\n| Ear\u00adnings (loss) Per Share Attri\u00adbu\u00adta\u00adble to Intel<\/td>\n | $0.35<\/td>\n | $(0.11)<\/td>\n | n\/m*<\/td>\n | <\/td>\n | $0.13<\/td>\n | $0.28<\/td>\n | down 54 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n In the second quar\u00adter, the com\u00adpa\u00adny gene\u00adra\u00adted $2.8 bil\u00adli\u00adon in cash from ope\u00adra\u00adti\u00adons and paid divi\u00addends of $0.5 billion.<\/p>\n <\/span><\/p>\nBusi\u00adness Unit Summary<\/u><\/p>\n Intel pre\u00advious\u00adly announ\u00adced the orga\u00adniza\u00adtio\u00adnal chan\u00adge to inte\u00adgra\u00adte its Acce\u00adle\u00adra\u00adted Com\u00adpu\u00adting Sys\u00adtems and Gra\u00adphics Group into its Cli\u00adent Com\u00adpu\u00adting Group and Data Cen\u00adter and AI<\/span> Group. This chan\u00adge is inten\u00added to dri\u00adve a more effec\u00adti\u00adve go-to-mar\u00adket capa\u00adbi\u00adli\u00adty and to acce\u00adle\u00adra\u00adte the sca\u00adle of the\u00adse busi\u00adnesses, while also redu\u00adcing cos\u00adts. As a result, the com\u00adpa\u00adny modi\u00adfied its seg\u00adment report\u00ading in the first quar\u00adter of 2023 to ali\u00adgn to this and cer\u00adtain other busi\u00adness reor\u00adga\u00adniza\u00adti\u00adons. All pri\u00ador-peri\u00adod seg\u00adment data has been retro\u00ads\u00adpec\u00adtively adjus\u00adted to reflect the way the com\u00adpa\u00adny intern\u00adal\u00adly recei\u00adves infor\u00adma\u00adti\u00adon and mana\u00adges and moni\u00adtors ope\u00adra\u00adting seg\u00adment per\u00adfor\u00admance start\u00ading in fis\u00adcal year 2023.<\/p>\n\n\n\nBusi\u00adness Unit Reve\u00adnue and Trends<\/strong><\/b><\/td>\n| <\/td>\n | Q2<\/span> 2023<\/strong><\/b><\/td>\n| <\/td>\n | vs. Q2<\/span> 2022<\/strong><\/b><\/td>\n| <\/td>\n<\/tr>\n | \n| Cli\u00adent Com\u00adpu\u00adting Group (CCG<\/span>)<\/td>\n | <\/td>\n | $6.8 bil\u00adli\u00adon<\/td>\n | <\/td>\n | down<\/td>\n | 12%<\/td>\n | <\/td>\n<\/tr>\n | \n| Data Cen\u00adter and AI<\/span> (DCAI<\/span>)<\/td>\n | <\/td>\n | $4.0 bil\u00adli\u00adon<\/td>\n | <\/td>\n | down<\/td>\n | 15%<\/td>\n | <\/td>\n<\/tr>\n | \n| Net\u00adwork and Edge (NEX<\/span>)<\/td>\n | <\/td>\n | $1.4 bil\u00adli\u00adon<\/td>\n | <\/td>\n | down<\/td>\n | 38%<\/td>\n | <\/td>\n<\/tr>\n | \n| Mobi\u00adleye<\/td>\n | <\/td>\n | $454 mil\u00adli\u00adon<\/td>\n | <\/td>\n | down<\/td>\n | 1%<\/td>\n | <\/td>\n<\/tr>\n | \n| Intel Foundry Ser\u00advices (IFS<\/span>)<\/td>\n | <\/td>\n | $232 mil\u00adli\u00adon<\/td>\n | <\/td>\n | up<\/td>\n | 307%<\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Busi\u00adness Highlights<\/strong><\/b><\/p>\n <\/p>\n \u25aa Intel remains on track to meet its goal of achie\u00adving five nodes in four years and to regain tran\u00adsis\u00adtor per\u00adfor\u00admance and power per\u00adfor\u00admance lea\u00adder\u00adship by 2025. The com\u00adpa\u00adny announ\u00adced an indus\u00adtry-first imple\u00admen\u00adta\u00adti\u00adon of backside power using Intel Power\u00adVia in a test chip, resul\u00adting in nota\u00adble per\u00adfor\u00admance and effi\u00adci\u00aden\u00adcy gains. Power\u00adVia will be incor\u00adpo\u00adra\u00adted into Intel 20A<\/span>, expec\u00adted to launch in the first half of 2024.<\/p>\n\u25aa IFS<\/span> announ\u00adced that Boe\u00ading and Nor\u00adthrop Grum\u00adman have com\u00admit\u00adted to joi\u00adning the U.S. Depart\u00adment of Defense\u2019s RAMP<\/span>\u2011C pro\u00adgram, led by Intel. The pro\u00adgram is inten\u00added to assu\u00adre dome\u00adstic access to next-gene\u00adra\u00adti\u00adon semi\u00adcon\u00adduc\u00adtors by estab\u00adli\u00adshing and demons\u00adt\u00adra\u00adting a U.S.-based foundry eco\u00adsys\u00adtem to deve\u00adlop and fabri\u00adca\u00adte chips on Intel 18A<\/span>.<\/p>\n\u25aa DCAI<\/span> announ\u00adced the gene\u00adral avai\u00adla\u00adbi\u00adli\u00adty of cloud ins\u00adtances of its 4th Gen Intel\u00ae Xeon\u00ae Sca\u00adlable pro\u00adces\u00adsors by Goog\u00adle Cloud. In addi\u00adti\u00adon, Intel\u2019s AI<\/span> acce\u00adle\u00adra\u00adti\u00adon capa\u00adbi\u00adli\u00adties were reco\u00adgni\u00adzed through third-par\u00adty vali\u00adda\u00adti\u00adon from MLCom\u00admons\u00ae, which published MLPerf\u2122 Trai\u00adning per\u00adfor\u00admance bench\u00admark data show\u00ading that 4th Gen Xeon and Haba\u00adna\u00ae Gaudi\u00ae2 are two com\u00adpel\u00adling, open alter\u00adna\u00adti\u00adves in the AI<\/span> mar\u00adket that com\u00adpe\u00adte on both per\u00adfor\u00admance and pri\u00adce. This fol\u00adlows Intel\u2019s recent col\u00adla\u00adbo\u00adra\u00adti\u00adon with Bos\u00adton Con\u00adsul\u00adting Group to deli\u00adver enter\u00adpri\u00adse-gra\u00adde, secu\u00adre gene\u00adra\u00adti\u00adve AI<\/span> to cus\u00adto\u00admers lever\u00adaging Intel\u2019s Gau\u00addi\u00ae and 4th Gen Xeon offerings.<\/p>\n\u25aa In CCG<\/span>, Intel con\u00adtin\u00adued to see strong demand for its 13th Gen Intel\u00ae Core\u2122 pro\u00adces\u00adsor fami\u00adly, with more than 300 designs expec\u00adted from OEM<\/span> part\u00adners this year. It also announ\u00adced a col\u00adla\u00adbo\u00adra\u00adti\u00adon with Micro\u00adsoft to dri\u00adve the deve\u00adlo\u00adp\u00adment of AI<\/span> on per\u00adso\u00adnal com\u00adpu\u00adting, and pre\u00adview\u00aded AI-enab\u00adled capa\u00adbi\u00adli\u00adties of Intel\u2019s upco\u00adming Mete\u00ador Lake cli\u00adent PC<\/span> pro\u00adces\u00adsors at Microsoft\u2019s Build 2023 con\u00adfe\u00adrence. In addi\u00adti\u00adon, Intel intro\u00addu\u00adced the Intel\u00ae Arc\u2122 Pro A60<\/span> and Pro A60M<\/span> as new mem\u00adbers of the Intel Arc Pro A\u2011series pro\u00adfes\u00adsio\u00adnal ran\u00adge of gra\u00adphics pro\u00adces\u00adsing units (GPUs).<\/p>\n\u25aa For NEX<\/span>, Intel, Erics\u00adson and HPE<\/span> suc\u00adcessful\u00adly demons\u00adtra\u00adted the industry\u2019s first vRAN solu\u00adti\u00adon run\u00adning on the 4th Gen Intel\u00ae Xeon\u00ae Sca\u00adlable pro\u00adces\u00adsor with Intel\u00ae vRAN Boost. Intel also recent\u00adly com\u00adple\u00adted an agree\u00adment with Erics\u00adson to part\u00adner broad\u00adly on its next-gene\u00adra\u00adti\u00adon opti\u00admi\u00adzed 5G<\/span> infra\u00adstruc\u00adtu\u00adre, under which Erics\u00adson will uti\u00adli\u00adze Intel\u2019s 18A<\/span> pro\u00adcess tech\u00adno\u00adlo\u00adgy for its future cus\u00adtom 5G<\/span> SoC. In addi\u00adti\u00adon, Intel and Erics\u00adson will expand the col\u00adla\u00adbo\u00adra\u00adti\u00adon announ\u00adced at Mobi\u00adle World Con\u00adgress 2023 to acce\u00adle\u00adra\u00adte indus\u00adtry-sca\u00adle open RAN<\/span> uti\u00adli\u00adzing stan\u00addard Intel Xeon-based plat\u00adforms as tel\u00adcos trans\u00adform to a foun\u00adda\u00adti\u00adon of pro\u00adgramma\u00adble, soft\u00adware-defi\u00adned infrastructure.<\/p>\n\u25aa Mobi\u00adleye con\u00adtin\u00adued to gene\u00adra\u00adte strong pro\u00adfi\u00adta\u00adbi\u00adli\u00adty in the second quar\u00adter and demons\u00adtra\u00adted trac\u00adtion with its advan\u00adced pro\u00adduct port\u00adfo\u00adlio by announ\u00adcing a Super\u00adVi\u00adsi\u00adon eyes-on, hands-off design win with Por\u00adsche and a mobi\u00adli\u00adty-as-a-ser\u00advice col\u00adla\u00adbo\u00adra\u00adti\u00adon with Volks\u00adwa\u00adgen Group that will soon begin testing.<\/p>\n Intel con\u00adti\u00adnues to stra\u00adte\u00adgi\u00adcal\u00adly invest in manu\u00adfac\u00adtu\u00adring capa\u00adci\u00adty to fur\u00adther advan\u00adce IDM<\/span> 2.0, and during the quar\u00adter announ\u00adced the sel\u00adec\u00adtion of Wro\u00adc\u0142aw, Pol\u00adand, as the site of a new cut\u00adting-edge semi\u00adcon\u00adduc\u00adtor assem\u00adbly and test faci\u00adli\u00adty. This faci\u00adli\u00adty, in which Intel expects to invest as much as $4.6 bil\u00adli\u00adon, will help meet cri\u00adti\u00adcal demand for assem\u00adbly and test capa\u00adci\u00adty that Intel anti\u00adci\u00adpa\u00adtes by 2027. Addi\u00adtio\u00adnal\u00adly, Intel and the Ger\u00adman fede\u00adral govern\u00adment signed a revi\u00adsed let\u00adter of intent for Intel\u2019s plan\u00adned lea\u00adding-edge wafer fabri\u00adca\u00adti\u00adon site in Mag\u00adde\u00adburg, Ger\u00adma\u00adny. The agree\u00adment encom\u00adpas\u00adses Intel\u2019s expan\u00added invest\u00adment in the site, now expec\u00adted to be more than 30 bil\u00adli\u00adon euros for two first-of-a-kind semi\u00adcon\u00adduc\u00adtor faci\u00adli\u00adties in Euro\u00adpe, along with increased govern\u00adment sup\u00adport that includes incen\u00adti\u00adves. Tog\u00ade\u00adther, the\u00adse invest\u00adments repre\u00adsent a major step toward a balan\u00adced and resi\u00adli\u00adent sup\u00adp\u00adly chain for Europe.<\/p>\nIntel also agreed to sell an appro\u00adxi\u00adm\u00adate\u00adly 20% sta\u00adke in its IMS<\/span> Nano\u00adfa\u00adbri\u00adca\u00adti\u00adon GmbH busi\u00adness to Bain Capi\u00adtal Spe\u00adcial Situa\u00adtions in a tran\u00adsac\u00adtion that values IMS<\/span> at appro\u00adxi\u00adm\u00adate\u00adly $4.3 bil\u00adli\u00adon. This invest\u00adment will posi\u00adti\u00adon IMS<\/span> to cap\u00adtu\u00adre the signi\u00adfi\u00adcant mar\u00adket oppor\u00adtu\u00adni\u00adty for mul\u00adti-beam mask wri\u00adting tools, which are cri\u00adti\u00adcal to the semi\u00adcon\u00adduc\u00adtor eco\u00adsys\u00adtem for enab\u00adling EUV<\/span> (extre\u00adme ultra\u00advio\u00adlet litho\u00adgra\u00adphy) tech\u00adno\u00adlo\u00adgy, by acce\u00adle\u00adra\u00adting inno\u00adva\u00adti\u00adon and enab\u00adling deeper cross-indus\u00adtry collaboration.<\/p>\nQ3<\/span> 2023 Dividend<\/u><\/p>\nThe com\u00adpa\u00adny announ\u00adced that its board of direc\u00adtors declared a quar\u00adter\u00adly divi\u00addend of $0.125 per share on the company\u2019s com\u00admon stock, which will be paya\u00adble on Sept. 1, 2023, to share\u00adhol\u00adders of record as of Aug. 7, 2023.<\/p>\n <\/strong><\/b><\/p>\nBusi\u00adness Outlook<\/u><\/p>\n Intel\u2019s gui\u00addance for the third quar\u00adter of 2023 includes both GAAP<\/span> and non-GAAP esti\u00adma\u00adtes. Recon\u00adci\u00adlia\u00adti\u00adons bet\u00adween GAAP<\/span> and non-GAAP finan\u00adcial mea\u00adsu\u00adres are included below.*<\/p>\n\n\n\nQ3<\/span> 2023<\/strong><\/b><\/td>\n| <\/td>\n | GAAP<\/span>*<\/strong><\/b><\/td>\n| <\/td>\n | Non-GAAP*<\/strong><\/b><\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | Appro\u00adxi\u00adm\u00adate\u00adly<\/td>\n | <\/td>\n | Appro\u00adxi\u00adm\u00adate\u00adly<\/td>\n<\/tr>\n | \n| Reve\u00adnue<\/td>\n | <\/td>\n | $12.9\u201313.9 bil\u00adli\u00adon<\/td>\n | <\/td>\n | $12.9\u201313.9 bil\u00adli\u00adon^<\/td>\n<\/tr>\n | \n| Gross mar\u00adgin<\/td>\n | <\/td>\n | 39.1%<\/td>\n | <\/td>\n | 43.0%<\/td>\n<\/tr>\n | \n| Tax rate<\/td>\n | <\/td>\n | 224%<\/td>\n | <\/td>\n | 13%<\/td>\n<\/tr>\n | \n| Ear\u00adnings (loss) per share attri\u00adbu\u00adta\u00adble to Intel \u2014 diluted<\/td>\n | <\/td>\n | $0.04<\/td>\n | <\/td>\n | $0.20<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n Actu\u00adal results may dif\u00adfer mate\u00adri\u00adal\u00adly from Intel\u2019s Busi\u00adness Out\u00adlook as a result of, among other things, the fac\u00adtors descri\u00adbed under \u201cFor\u00adward-Loo\u00adking State\u00adments\u201d below.<\/p>\n *Effec\u00adti\u00adve Janu\u00adary 2023, Intel increased the esti\u00adma\u00adted useful life of cer\u00adtain pro\u00adduc\u00adtion machi\u00adnery and equip\u00adment from five years to eight years. When com\u00adpared to the esti\u00adma\u00adted useful life in place as of the end of 2022, Intel expects total depre\u00adcia\u00adti\u00adon expen\u00adse in 2023 to be redu\u00adced by $4.2 bil\u00adli\u00adon. Intel expects this chan\u00adge will result in an appro\u00adxi\u00adm\u00adate\u00adly $2.5 bil\u00adli\u00adon increase to gross mar\u00adgin, a $400 mil\u00adli\u00adon decrease in R&<\/span>D expen\u00adses and a $1.3 bil\u00adli\u00adon decrease in ending inven\u00adto\u00adry values.<\/p>\nEar\u00adnings Webcast<\/u><\/p>\n Intel will hold a public web\u00adcast at 2 p.m. PDT<\/span> today to dis\u00adcuss the results for its second-quar\u00adter 2023. The live public web\u00adcast can be acces\u00adsed on Intel\u2019s Inves\u00adtor Rela\u00adti\u00adons web\u00adsite at www.intc.com. The cor\u00adre\u00adspon\u00adding ear\u00adnings pre\u00adsen\u00adta\u00adti\u00adon and web\u00adcast replay will also be available on the site.<\/p>\n^ No adjus\u00adt\u00adment on a non-GAAP basis.<\/em><\/p>\n <\/span><\/p>\nFor\u00adward-Loo\u00adking Statements<\/u><\/p>\n This release con\u00adta\u00adins for\u00adward-loo\u00adking state\u00adments that invol\u00adve a num\u00adber of risks and uncer\u00adtain\u00adties. Words such as \u201cacce\u00adle\u00adra\u00adte,\u201d \u201cachie\u00adve,\u201d \u201caim,\u201d \u201cambi\u00adti\u00adons,\u201d \u201canti\u00adci\u00adpa\u00adte,\u201d \u201cbelie\u00adve,\u201d \u201ccom\u00admit\u00adted,\u201d \u201ccon\u00adti\u00adnue,\u201d \u201ccould,\u201d \u201cdesi\u00adgned,\u201d \u201cesti\u00adma\u00adte,\u201d \u201cexpect,\u201d \u201cfore\u00adcast,\u201d \u201cfuture,\u201d \u201cgoals,\u201d \u201cgrow,\u201d \u201cgui\u00addance,\u201d \u201cintend,\u201d \u201clikely,\u201d \u201cmay,\u201d \u201cmight,\u201d \u201cmile\u00adsto\u00adnes,\u201d \u201cnext gene\u00adra\u00adti\u00adon,\u201d \u201cobjec\u00adti\u00adve,\u201d \u201con track,\u201d \u201coppor\u00adtu\u00adni\u00adty,\u201d \u201cout\u00adlook,\u201d \u201cpen\u00adding,\u201d \u201cplan,\u201d \u201cposi\u00adti\u00adon,\u201d \u201cpoten\u00adti\u00adal,\u201d \u201cpos\u00adsi\u00adble,\u201d \u201cpre\u00addict,\u201d \u201cpro\u00adgress,\u201d \u201cramp,\u201d \u201croad\u00admap,\u201d \u201cseeks,\u201d \u201cshould,\u201d \u201cstri\u00adve,\u201d \u201ctar\u00adgets,\u201d \u201cto be,\u201d \u201cupco\u00adming,\u201d \u201cwill,\u201d \u201cwould,\u201d and varia\u00adti\u00adons of such words and simi\u00adlar expres\u00adsi\u00adons are inten\u00added to iden\u00adti\u00adfy such for\u00adward-loo\u00adking state\u00adments, which may include state\u00adments regarding:<\/p>\n \n- our busi\u00adness plans and stra\u00adtegy and anti\u00adci\u00adpa\u00adted bene\u00adfits the\u00adr\u00ade\u00adf\u00adrom, inclu\u00adding with respect to our IDM<\/span> 2.0 stra\u00adtegy, our part\u00adner\u00adship with Brook\u00adfield, the tran\u00adsi\u00adti\u00adon to an inter\u00adnal foundry model, updates to our report\u00ading struc\u00adtu\u00adre and our AI<\/span> strategy;<\/li>\n
- pro\u00adjec\u00adtions of our future finan\u00adcial per\u00adfor\u00admance, inclu\u00adding future reve\u00adnue, gross mar\u00adgins, capi\u00adtal expen\u00addit\u00adures, and cash flows;<\/li>\n
- pro\u00adjec\u00adted cos\u00adts and yield trends;<\/li>\n
- future cash requi\u00adre\u00adments and the avai\u00adla\u00adbi\u00adli\u00adty, uses, suf\u00adfi\u00adci\u00aden\u00adcy, and cost of capi\u00adtal resour\u00adces, and sources of fun\u00adding, inclu\u00adding future capi\u00adtal and R&<\/span>D invest\u00adments, cre\u00addit rating expec\u00adta\u00adti\u00adons, and expec\u00adted returns to stock\u00adhol\u00adders, such as stock repurcha\u00adses and dividends;<\/li>\n
- future pro\u00adducts, ser\u00advices and tech\u00adno\u00adlo\u00adgies, and the expec\u00adted goals, time\u00adline, ramps, pro\u00adgress, avai\u00adla\u00adbi\u00adli\u00adty, pro\u00adduc\u00adtion, regu\u00adla\u00adti\u00adon and bene\u00adfits of such pro\u00adducts, ser\u00advices and tech\u00adno\u00adlo\u00adgies, inclu\u00adding future pro\u00adcess nodes and pack\u00ada\u00adging tech\u00adno\u00adlo\u00adgy, pro\u00adduct road\u00admaps, sche\u00addu\u00adles, future pro\u00adduct archi\u00adtec\u00adtures, expec\u00adta\u00adti\u00adons regar\u00adding pro\u00adcess per\u00adfor\u00admance, per-watt pari\u00adty, and metrics and expec\u00adta\u00adti\u00adons regar\u00adding pro\u00adduct and pro\u00adcess leadership;<\/li>\n
- invest\u00adment plans, and impacts of invest\u00adment plans, inclu\u00adding in the US<\/span> and abroad;<\/li>\n
- inter\u00adnal and exter\u00adnal manu\u00adfac\u00adtu\u00adring plans, inclu\u00adding future inter\u00adnal manu\u00adfac\u00adtu\u00adring volu\u00admes, manu\u00adfac\u00adtu\u00adring expan\u00adsi\u00adon plans and the finan\u00adcing the\u00adr\u00ade\u00adfor, and exter\u00adnal foundry usage;<\/li>\n
- future pro\u00adduc\u00adtion capa\u00adci\u00adty and pro\u00adduct supply;<\/li>\n
- sup\u00adp\u00adly expec\u00adta\u00adti\u00adons, inclu\u00adding regar\u00adding cons\u00adtraints, limi\u00adta\u00adti\u00adons, pri\u00adcing, and indus\u00adtry shortages;<\/li>\n
- plans and goals rela\u00adted to Intel\u2019s foundry busi\u00adness, inclu\u00adding with respect to future manu\u00adfac\u00adtu\u00adring capa\u00adci\u00adty and foundry ser\u00advice offe\u00adrings, inclu\u00adding tech\u00adno\u00adlo\u00adgy and IP<\/span> offerings;<\/li>\n
- expec\u00adted timing and impact of acqui\u00adsi\u00adti\u00adons, dives\u00adti\u00adtures, and other signi\u00adfi\u00adcant tran\u00adsac\u00adtions, inclu\u00adding our pro\u00adpo\u00adsed acqui\u00adsi\u00adti\u00adon of Tower Semi\u00adcon\u00adduc\u00adtor Ltd. and the sale of our NAND<\/span> memo\u00adry business;<\/li>\n
- expec\u00adted com\u00adple\u00adti\u00adon and impacts of res\u00adtruc\u00adtu\u00adring acti\u00advi\u00adties and cost-saving or effi\u00adci\u00aden\u00adcy initia\u00adti\u00adves, inclu\u00adding tho\u00adse rela\u00adted to the 2022 Res\u00adtruc\u00adtu\u00adring Program;<\/li>\n
- future social and envi\u00adron\u00admen\u00adtal per\u00adfor\u00admance goals, mea\u00adsu\u00adres, stra\u00adte\u00adgies and results;<\/li>\n
- our anti\u00adci\u00adpa\u00adted growth, future mar\u00adket share, and trends in our busi\u00adnesses and operations;<\/li>\n
- pro\u00adjec\u00adted growth and trends in mar\u00adkets rele\u00advant to our businesses;<\/li>\n
- anti\u00adci\u00adpa\u00adted trends and impacts rela\u00adted to indus\u00adtry com\u00adpo\u00adnent, sub\u00adstra\u00adte, and foundry capa\u00adci\u00adty uti\u00adliza\u00adti\u00adon, shorta\u00adges and constraints;<\/li>\n
- expec\u00adta\u00adti\u00adons regar\u00adding govern\u00adment incentives;<\/li>\n
- future tech\u00adno\u00adlo\u00adgy trends and deve\u00adlo\u00adp\u00adments, such as AI<\/span>;<\/li>\n
- future macro envi\u00adron\u00admen\u00adtal and eco\u00adno\u00admic con\u00addi\u00adti\u00adons, inclu\u00adding regio\u00adnal or glo\u00adbal down\u00adturns or recessions;<\/li>\n
- future respon\u00adses to and effects of COVID-19<\/span>, inclu\u00adding as to manu\u00adfac\u00adtu\u00adring, trans\u00adpor\u00adta\u00adti\u00adon and ope\u00adra\u00adtio\u00adnal rest\u00adric\u00adtions and dis\u00adrup\u00adti\u00adons and broa\u00adder eco\u00adno\u00admic conditions;<\/li>\n
- geo\u00adpo\u00adli\u00adti\u00adcal con\u00addi\u00adti\u00adons, inclu\u00adding the impacts of Russia\u2019s war on Ukrai\u00adne and rising ten\u00adsi\u00adons bet\u00adween the U.S. and China;<\/li>\n
- tax- and accoun\u00adting-rela\u00adted expectations;<\/li>\n
- expec\u00adta\u00adti\u00adons regar\u00adding our rela\u00adti\u00adonships with cer\u00adtain sanc\u00adtion\u00aded par\u00adties; and<\/li>\n
- other cha\u00adrac\u00adte\u00adriza\u00adti\u00adons of future events or circumstances.<\/li>\n<\/ul>\n
<\/p>\n Such state\u00adments invol\u00adve many risks and uncer\u00adtain\u00adties that could cau\u00adse our actu\u00adal results to dif\u00adfer mate\u00adri\u00adal\u00adly from tho\u00adse expres\u00adsed or impli\u00aded, including:<\/p>\n \n- chan\u00adges in demand for our products;<\/li>\n
- chan\u00adges in pro\u00adduct mix;<\/li>\n
- the com\u00adple\u00adxi\u00adty and fixed cost natu\u00adre of our manu\u00adfac\u00adtu\u00adring operations;<\/li>\n
- the high level of com\u00adpe\u00adti\u00adti\u00adon and rapid tech\u00adno\u00adlo\u00adgi\u00adcal chan\u00adge in our industry;<\/li>\n
- the signi\u00adfi\u00adcant upfront invest\u00adments in R&<\/span>D and our busi\u00adness, pro\u00adducts, tech\u00adno\u00adlo\u00adgies, and manu\u00adfac\u00adtu\u00adring capabilities;<\/li>\n
- vul\u00adnerabi\u00adli\u00adty to new pro\u00adduct deve\u00adlo\u00adp\u00adment and manu\u00adfac\u00adtu\u00adring-rela\u00adted risks, inclu\u00adding pro\u00adduct defects or erra\u00adta, par\u00adti\u00adcu\u00adlar\u00adly as we deve\u00adlop next gene\u00adra\u00adti\u00adon pro\u00adducts and imple\u00adment next gene\u00adra\u00adti\u00adon pro\u00adcess technologies;<\/li>\n
- risks asso\u00adcia\u00adted with a high\u00adly com\u00adplex glo\u00adbal sup\u00adp\u00adly chain, inclu\u00adding from dis\u00adrup\u00adti\u00adons, delays, trade ten\u00adsi\u00adons, or shortages;<\/li>\n
- sales-rela\u00adted risks, inclu\u00adding cus\u00adto\u00admer con\u00adcen\u00adtra\u00adti\u00adon and the use of dis\u00adtri\u00adbu\u00adtors and other third parties;<\/li>\n
- poten\u00adti\u00adal secu\u00adri\u00adty vul\u00adnerabi\u00adli\u00adties in our products;<\/li>\n
- cyber\u00adse\u00adcu\u00adri\u00adty and pri\u00adva\u00adcy risks;<\/li>\n
- invest\u00adment and tran\u00adsac\u00adtion risk;<\/li>\n
- IP<\/span> risks and risks asso\u00adcia\u00adted with liti\u00adga\u00adti\u00adon and regu\u00adla\u00adto\u00adry proceedings;<\/li>\n
- evol\u00adving regu\u00adla\u00adto\u00adry and legal requi\u00adre\u00adments across many jurisdictions;<\/li>\n
- geo\u00adpo\u00adli\u00adti\u00adcal and inter\u00adna\u00adtio\u00adnal trade conditions;<\/li>\n
- our debt obligations;<\/li>\n
- risks of lar\u00adge sca\u00adle glo\u00adbal operations;<\/li>\n
- macroe\u00adco\u00adno\u00admic conditions;<\/li>\n
- impacts of the COVID-19<\/span> or simi\u00adlar such pandemic;<\/li>\n
- other risks and uncer\u00adtain\u00adties descri\u00adbed in this release, our most recent Annu\u00adal Report on Form 10\u2011K and our other filings with the U.S. Secu\u00adri\u00adties and Exch\u00adan\u00adge Com\u00admis\u00adsi\u00adon (SEC<\/span>).<\/li>\n<\/ul>\n
<\/p>\n Given the\u00adse risks and uncer\u00adtain\u00adties, rea\u00adders are cau\u00adtio\u00adned not to place undue reli\u00adance on such for\u00adward-loo\u00adking state\u00adments. Rea\u00adders are urged to careful\u00adly review and con\u00adsider the various dis\u00adclo\u00adsures made in this release and in other docu\u00adments we file from time to time with the SEC<\/span> that dis\u00adc\u00adlo\u00adse risks and uncer\u00adtain\u00adties that may affect our business.<\/p>\nUnless spe\u00adci\u00adfi\u00adcal\u00adly indi\u00adca\u00adted other\u00adwi\u00adse, the for\u00adward-loo\u00adking state\u00adments in this release do not reflect the poten\u00adti\u00adal impact of any dives\u00adti\u00adtures, mer\u00adgers, acqui\u00adsi\u00adti\u00adons, or other busi\u00adness com\u00adbi\u00adna\u00adti\u00adons that have not been com\u00adple\u00adted as of the date of this fil\u00ading. In addi\u00adti\u00adon, the for\u00adward-loo\u00adking state\u00adments in this release are based on management\u2019s expec\u00adta\u00adti\u00adons as of the date of this release, unless an ear\u00adlier date is spe\u00adci\u00adfied, inclu\u00adding expec\u00adta\u00adti\u00adons based on third-par\u00adty infor\u00adma\u00adti\u00adon and pro\u00adjec\u00adtions that manage\u00adment belie\u00adves to be repu\u00adta\u00adble. We do not under\u00adta\u00adke, and express\u00adly dis\u00adcla\u00adim any duty, to update such state\u00adments, whe\u00adther as a result of new infor\u00adma\u00adti\u00adon, new deve\u00adlo\u00adp\u00adments, or other\u00adwi\u00adse, except to the ext\u00adent that dis\u00adclo\u00adsure may be requi\u00adred by law.<\/p>\n <\/span><\/p>\nAbout Intel<\/u><\/p>\n Intel (Nasdaq: INTC<\/span>) is an indus\u00adtry lea\u00adder, crea\u00adting world-chan\u00adging tech\u00adno\u00adlo\u00adgy that enables glo\u00adbal pro\u00adgress and enri\u00adches lives. Inspi\u00adred by Moore\u2019s Law, we con\u00adti\u00adnuous\u00adly work to advan\u00adce the design and manu\u00adfac\u00adtu\u00adring of semi\u00adcon\u00adduc\u00adtors to help address our cus\u00adto\u00admers\u2019 grea\u00adtest chal\u00adlenges. By embed\u00adding intel\u00adli\u00adgence in the cloud, net\u00adwork, edge and every kind of com\u00adpu\u00adting device, we unleash the poten\u00adti\u00adal of data to trans\u00adform busi\u00adness and socie\u00adty for the bet\u00adter. To learn more about Intel\u2019s inno\u00adva\u00adtions, go to newsroom.intel.com and intel.com.<\/p>\n\u00a9 Intel Cor\u00adpo\u00adra\u00adti\u00adon. Intel, the Intel logo, and other Intel marks are trade\u00admarks of Intel Cor\u00adpo\u00adra\u00adti\u00adon or its sub\u00adsi\u00addia\u00adries. Other names and brands may be clai\u00admed as the pro\u00adper\u00adty of others.<\/p>\n <\/span><\/p>\nIntel Cor\u00adpo\u00adra\u00adti\u00adon<\/p>\n Con\u00adso\u00adli\u00adda\u00adted Con\u00adden\u00adsed State\u00adments of Inco\u00adme and Other Information<\/p>\n \n\n\n| <\/td>\n | <\/td>\n | Three Months Ended<\/strong><\/b><\/td>\n<\/tr>\n\n(In Mil\u00adli\u00adons, Except Per Share Amounts; Unaudited)<\/strong><\/b><\/td>\n| <\/td>\n | Jul 1, 2023<\/strong><\/b><\/td>\n| <\/td>\n | Jul 2, 2022<\/strong><\/b><\/td>\n<\/tr>\n\nNet reve\u00adnue<\/strong><\/b><\/td>\n| <\/td>\n | $ 12,949<\/strong><\/b><\/td>\n| <\/td>\n | $ 15,321<\/strong><\/b><\/td>\n<\/tr>\n\n| Cost of sales<\/td>\n | <\/td>\n | 8,311<\/td>\n | <\/td>\n | 9,734<\/td>\n<\/tr>\n | \nGross mar\u00adgin<\/strong><\/b><\/td>\n| <\/td>\n | 4,638<\/strong><\/b><\/td>\n| <\/td>\n | 5,587<\/strong><\/b><\/td>\n<\/tr>\n\n| Rese\u00adarch and development<\/td>\n | <\/td>\n | 4,080<\/td>\n | <\/td>\n | 4,400<\/td>\n<\/tr>\n | \n| Mar\u00adke\u00adting, gene\u00adral, and administrative<\/td>\n | <\/td>\n | 1,374<\/td>\n | <\/td>\n | 1,800<\/td>\n<\/tr>\n | \n| Res\u00adtruc\u00adtu\u00adring and other charges<\/td>\n | <\/td>\n | 200<\/td>\n | <\/td>\n | 87<\/td>\n<\/tr>\n | \nOpe\u00adra\u00adting expenses<\/strong><\/b><\/td>\n| <\/td>\n | 5,654<\/strong><\/b><\/td>\n| <\/td>\n | 6,287<\/strong><\/b><\/td>\n<\/tr>\n\nOpe\u00adra\u00adting inco\u00adme (loss)<\/strong><\/b><\/td>\n| <\/td>\n | (1,016)<\/strong><\/b><\/td>\n| <\/td>\n | (700)<\/strong><\/b><\/td>\n<\/tr>\n\n| Gains (los\u00adses) on equi\u00adty invest\u00adments, net<\/td>\n | <\/td>\n | (24)<\/td>\n | <\/td>\n | (90)<\/td>\n<\/tr>\n | \n| Inte\u00adrest and other, net<\/td>\n | <\/td>\n | 224<\/td>\n | <\/td>\n | (119)<\/td>\n<\/tr>\n | \nInco\u00adme (loss) befo\u00adre taxes<\/strong><\/b><\/td>\n| <\/td>\n | (816)<\/strong><\/b><\/td>\n| <\/td>\n | (909)<\/strong><\/b><\/td>\n<\/tr>\n\n| Pro\u00advi\u00adsi\u00adon for (bene\u00adfit from) taxes<\/td>\n | <\/td>\n | (2,289)<\/td>\n | <\/td>\n | (455)<\/td>\n<\/tr>\n | \nNet inco\u00adme (loss)<\/strong><\/b><\/td>\n| <\/td>\n | 1,473<\/strong><\/b><\/td>\n| <\/td>\n | (454)<\/strong><\/b><\/td>\n<\/tr>\n\n| Less: Net inco\u00adme (loss) attri\u00adbu\u00adta\u00adble to non-con\u00adtrol\u00adling interests<\/td>\n | <\/td>\n | (8)<\/td>\n | <\/td>\n | \u2014<\/td>\n<\/tr>\n | \nNet inco\u00adme (loss) attri\u00adbu\u00adta\u00adble to Intel<\/strong><\/b><\/td>\n| <\/td>\n | $ 1,481<\/strong><\/b><\/td>\n| <\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |