On Thursday, Intel released its first quarter results. Its revenue during this period decreased by 7%, to $18.4 billion, while net income rose by 141%, to $8.1 billion. These results were slightly better than Refinitiv analysts expected, but at the same time, the company worsened its forecasts for the second quarter.
In the next quarter, the company expects earnings of $0.7 per share and revenue of $18 billion, compared to $0.83 and $18.4 billion according to analysts at Refinitiv. The company attributed this to a decline in PC sales, as well as the impact of general economic uncertainty associated with the military conflict in Ukraine and large-scale lockdowns in China.
The decline in demand for PCs has already had a negative impact on Intel’s business, with demand growing in 2020 and 2021 amid the pandemic and the transition of many to remote work. In the first quarter of this year, according to research firm Gartner, PC shipments fell 6.8%. Intel acknowledged that consumer demand for PCs has declined, while noting that corporate demand remains strong. However, revenue from the PC chip division fell 13% in the first quarter to $9.3 billion. In addition, as Intel CEO Pat Gelsinger said, the shortage of chips in the world is likely to last longer, than he previously expected, until 2024, not until 2023.
Shares of Intel after the publication of financial statements fell by 4%.
Why companies are investing tens of billions of dollars in the production of semiconductors – in the publication “Kommersant” “Chips attracted investment.”
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