Semiconductor giant Intel has disappointed Wall Street with its outlook for the current quarter. The stock fell almost 11 percent in after-hours trading on Thursday.
Intel forecast revenues of between $12.2 and $13.2 billion for the current quarter. Analysts on average had expected a good $14 billion. The forecast for adjusted earnings per share also remained well below expectations.
Intel boss wants to create a turnaround
The forecast shows that Intel CEO Pat Gelsinger still has a lot of work to do in transforming the once-dominant chip company. The competition is not only strong when it comes to technology for data centers. Gelsinger wants to turn things around with new production processes for more efficient chips.
In the last quarter, Intel increased sales by ten percent year-on-year to $15.4 billion (14.2 billion euros), slightly exceeding market expectations. The bottom line was a profit of $2.7 billion after a loss of $700 million in the same quarter last year.
The development of individual divisions shows where the problems lie. With the recovery of the computer market, revenue from PC processors rose by a third to $8.8 billion. Gelsinger assumes that sales of personal computers will rise again to around 300 million devices per year. Intel wants to boost sales with the concept of the “AI PC”, which is said to be particularly well designed for applications with artificial intelligence.
In the data center technology business, however, sales fell by ten percent to four billion dollars. That was below analysts’ expectations. Intel’s smaller rival AMD, among others, has recently been causing problems here. In addition, with the increasing use of applications based on artificial intelligence, the semiconductor company Nvidia is on the rise with its specially designed chips.
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