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Intel’s Client Computing Group saw a lower than expected revenue which came in at $9.29 billion.
American multinational corporation and technology company Intel Corporation (NASDAQ: INTC) has released its Q1 performance report, with revenue down by 7% Year Over Year (YoY). As announced, the company’s GAAP revenue came in at $18.4 billion for the quarter while the non-GAAP revenue also came in at the same figure, but with a 1% decline from the level, it was in the year-ago period.
The company reported Earnings Per Share of 87 cents adjusted, a figure way better than the 81 cents expected by analysts, according to Refinitiv. Despite the revenues that were less sterling compared to last year’s, the published figures were much better than the $18.31 billion projected by analysts polled by Refinitiv.
“Q1 was a strong start to the year, exceeding expectations on both the top-and bottom-line,” said Pat Gelsinger, Intel CEO. “With a $1 trillion market opportunity ahead of us, we remain laser-focused on our IDM 2.0 strategy. We executed well against that strategy in Q1, delivering key product and technology milestones and announcing plans to expand our manufacturing capacity in both the US and Europe to meet the continued demand for semiconductors and drive a more balanced, resilient global supply chain.”
The global chip marketplace has been experiencing a lot of challenges lately and also weighed down on Intel’s performance. While the firm was able to navigate through this in the past quarter, Gelsinger said the challenges might extend into 2024. “We expect the industry will continue to see challenges until at least 2024 in areas like capacity and tool availability,” Gelsinger told analysts on a conference call.
Intel’s Client Computing Group saw a lower than expected revenue which came in at $9.29 billion. Besides this business unit, Intel also recorded poor sales with respect to Intel chips for desktop PCs and notebooks.
Intel Revenue Plunge and the Stock Price Slump
With the dwindling revenue in the company’s key business units, investors sold off their pot in the pre-market as the company’s stock dropped by 3.10% to $45.27. The selloff was aided in part because the company also gave bearish guidance for the coming quarter.
Instead of the $18.38 billion revenue that was being expected by analysts, Intel said it is expecting an $18 billion figure for the quarter. Projections by the firm for Earnings per Share (EPS) for the quarter were pegged at 70 cents as against the 83 cents polled by Refinitiv analysts.
Intel tried to make up for the disappointing projections in its overall Guidance for the fiscal year with an expected $3.60 Earnings Per Share on $76 billion in revenue as against the $3.50 per share and $75.78 billion in revenue projected by Refinitiv analysts.
The company said it has a huge number of hyper-scale data center companies lining up for its new server chips code-named Sapphire Rapids which is projected to be “meaningfully faster.” The sales from this chip can help in beating the projected numbers across the board.