DThe sharp drop in PC sales is having a much greater impact on the sales of the chip manufacturer Intel than expected and are likely to push the group into the red in the current quarter. After the presentation of the quarterly balance sheet and a pessimistic forecast by the group, Intel’s share price fell by seven percent on Thursday after the close of trading in New York. As a result, the titles of competitors AMD lost 2.4 percent and Nvidia two percent in value.
Intel’s fourth-quarter revenue fell 32 percent to $14 billion, the company said. Analysts had expected an average of $ 14.46 billion. For the first quarter, Intel announced a sales volume of 10.5 to 11.5 billion dollars. According to Refinitiv data, industry experts had expected $13.93 billion.
And Magdeburg?
Instead of the previously expected adjusted earnings of 24 cents per share in the first quarter, the group forecast a loss of 15 cents. Intel CEO Pat Gelsinger told Reuters he expects one of the largest inventory write-downs the industry has ever seen. This has a significant impact on expectations for the current quarter.
The weak figures put a question mark behind the group’s ambitious investment plans. In Europe alone, he wants to invest 80 billion euros in new factories, one of them in Magdeburg. According to media reports, the start of construction there has been delayed due to uncertainties about the amount of government funding.
Months ago, Gelsinger had set a savings target of three billion dollars for 2023. He had also signaled layoffs, but without giving details. American technology groups such as Amazon, Microsoft & Co have announced that more than 150,000 jobs will be cut in the past few months.
Things went much better for the Intel subsidiary Mobileye. The provider of driver assistance systems surprisingly increased sales in the past quarter by almost 60 percent to 565 million dollars. Earnings were also higher than expected at $0.27 per share. Stockbrokers also rated the revenue target of $2.19 to $2.28 billion targeted for 2023 positively.
