Your current location is:{Current column} >>Text
Intel forecasts gloomy quarter on supply
{Current column}42People have watched
Introduction© Reuters. FILE PHOTO: The Intel Corporation logo is seen on a display in a store in Manhattan, New ...

By Eva Mathews, Jane Lanhee Lee and Sonia Cheema
(Reuters) -Chipmaker Intel Corp (NASDAQ:INTC) forecast second-quarter revenue and profit below Wall Street expectations on Thursday on worries of weak demand in its largest market, PCs, and increased supply-chain uncertainty due to COVID-19 lockdowns in China.
Shares of the company fell 5% in after-market trading.
Rising inflation, resurgence of COVID-19 in China and uncertainties around the war in Ukraine have shifted consumer spending away from gadgets, hurting Intel. More than half of its revenue last year came from the segment selling processors for PCs.
"We are expecting that Shanghai does open up fairly soon, but that does moderate our outlook a little bit on Q2," Intel Chief Executive Pat Gelsinger told Reuters. "It doesn't change any perspective on the year, which we think as we go into the second half, you have more PC demand."
The first quarter beats help Intel meet its full-year revenue outlook, he added.
As lockdowns in China continue, supply-chain bottlenecks are likely to hurt Intel's customers, in turn affecting the chipmaker's business."We think Intel still has to prove they can meet guidance targets before the stock receives full credit for a strong guide," said Logan Purk, analyst at Edward Jones.
Analysts say the PC market is coming off of searing rates of growth over the last two years as remote working and learning triggered high demand during the pandemic.
Revenue at Intel's Client Computing Group, which supplies PC makers and is the largest contributor to the company's revenue, fell 13% to $9.3 billion in the first quarter.
The company expects current-quarter adjusted profit of 70 cents per share on revenue of about $18 billion, below analysts' average estimate of 83 cents per share on $18.38 billion, according to IBES data from Refinitiv.
Intel is also facing increasing competition in the data center space, as peers Nvidia (NASDAQ:NVDA) Corp and Advanced Micro Devices (NASDAQ:AMD) are ramping up their chip production to cater to the booming market amid growth in the metaverse, AI applications and cloud computing.
Revenue from Intel's higher-margin data center and AI business rose 22% to $6 billion in the reported quarter.
However, adjusted revenue for the first quarter was $18.4 billion, compared with analysts' average estimate of $18.31 billion.
On an adjusted basis, Intel earned 87 cents per share, above expectations of 81 cents.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!
Tags:
Related articles
Asian stocks muted as rate hike fears offset Chinese GDP optimism By
{Current column}By Ambar Warrick-- Most Asian stock markets traded in a flat-to-low range on Tuesday as fears of ris ...
Read moreReckitt to challenge $60 million baby formula verdict, shares sink By Reuters
{Current column}(Reuters) -Reckitt Benckiser said on Friday it would pursue all options to have a $60 million verdic ...
Read moreBitcoin price: Standard Chartered says $150,000 level in 2024 'now looks likely' By
{Current column}price has continued to move higher in March, which is in line with historical trends heading into th ...
Read more
Popular Articles
- U.S. Supreme Court to examine whistleblower claims against financial firms in UBS case By Reuters
- Trump wins pause of $454 million civil fraud ruling, avoiding asset seizures By Reuters
- Tesla to raise US prices for Model Y vehicles by $1,000 on April 1 By Reuters
- Stocks need earnings growth, rate cuts to defend current high valuations
- Stocks slide on U.S. debt ceiling and inflation woes By Reuters
- Galaxy Digital's Mike Novogratz explains why Bitcoin price will keep going higher By
Latest articles
-
More US consumers are falling behind on payments By Reuters
-
Stock Market Today: S&P 500 closes higher as tech jumps ahead of Fed meeting By
-
Gold prices 2024 outlook: Goldman Sachs raises its forecast By
-
3 Undervalued Stocks to Buy as Optimism Persists Despite Rate
-
Oil edges lower; U.S. inflation, Chinese trade data in focus By
-
Islamic State releases photo of alleged attackers in Russia shooting By Reuters