Intel misses Q1 forecast, shares fall 7% |

26 january (Reuters) – Intel Corp’s ( INTC.O ) first-quarter revenue forecast fell well short of Wall Street targets on Thursday, as the chipmaker grapples with a deteriorating PC market and its data center customers delay purchases amid fears of a global economic crisis. decline.

The company’s shares fell 7% in after-hours trading as it expects a surprise loss for the current quarter as well.

After two years of strong growth, demand for consumer electronics fell off a cliff, and the PC industry is grappling with a backlog of inventory.

According to research firm IDC, PC shipments will fall 16.5% to 292.3 million units in 2022, forcing chipmakers to cut production and lower revenue forecasts.

Declining PC demand also pressured Microsoft Corp’s ( MSFT.O ) More Personal Computing segment, which includes Windows, devices and search revenue, leading to a 19% drop in the segment in the second quarter.

Meanwhile, the data center market has also slowed from double-digit growth as businesses try to cut costs to weather the economic slowdown.

Since CEO Pat Gelsinger returned to the company nearly two years ago, Intel has focused on regaining leadership in chip manufacturing technology. Outsourcing the chip manufacturing process has helped competitors like AMD create smaller and faster chips and overtake Intel’s technology.

The company in the first quarter approx 10,5 billion 11.5 from the dollar billion predicts income up to dollars. According to Refinitiv data, analysts average 13.93 billion dollars they expected total revenue.

The company expects an adjusted loss of 15 cents per share versus earnings expectations of 24 cents per share.

Revenue in the fourth quarter decreased by 32% to 14 billion dollars organized. Analysts average 14.46 billion dollars they expect income.

Reporting by Chavi Mehta in Bengaluru; Edited by Sriraj Kalluvila

Our standards: Thomson Reuters Trust Principles.

2023-01-27 01:39:10
Source – reuters

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