Investors were disappointed despite the increase in third-quarter earnings as a shortage of parts squeezed computer shipments and a crackdown on computer games in China hit server chip sales.
Intel, which powers many personal computers, reported Thursday that third-quarter sales were $ 19.2 billion, up 5% from the year-ago quarter and generating $ 6.8 billion in net income.Revenue removal from adjusted sales, Memory manipulation sold by Intel To Korea
SK Hynix Ltd,
It came in at $ 18.1 billion, below Wall Street’s forecast of $ 18.2 billion.
Intel stocks, which rose 1.14% on Thursday, fell more than 8% in after-hours trading based on the results.
Prior to the results, analysts warned that PC sales would suffer as a shortage of parts curtailed computer sales.
Intel CEO Pat Gelsinger says power controllers and Ethernet components have “inventory and supply challenges” and buy more laptops and servers despite a large backlog. He said he was limiting the capabilities of his customers.
Sales of units containing chips in notebooks were down 10%. This impact was partially offset by the power and rising prices of Intel’s desktop business, amid strong demand from vendors shipping higher-value devices.
Chipmakers said data center sales grew 10% to $ 6.5 billion, partly due to a recovery from the economic impact of the pandemic. However, the results fell short of Wall Street’s expectations.
Gersinger said some data center customers servicing the Chinese video game market are adjusting their business after they start cracking down on the time children play video games. I did. China in August Imposing restrictions on young gamers To fight what it characterized as a youth video game addiction.
“We expect it to recover,” Gelsinger said.
Gelsinger said the tip shortage should slowly begin to improve next year. May be dragged in 2023..
Rug Susquehanna analyst Christopher Roland said the time between ordering and delivering chips surged to an average of 22 weeks, adding that it was the longest time since data tracking began in 2013. rice field.
Gelsinger pledged last month Invest up to $ 95 billion With new chip production capacity in Europe, Intel has added more than $ 20 billion to US factory investment as Intel seeks to become a leading contract chip maker in response to rising demand for semiconductors.
, World’s Leading Contract Chip Maker, Said It Will Build This Month New chip manufacturing factory in Japan, When
And memory chip makers
Above all There is an expansion plan..
Gelsinger said Intel is working with automakers that have been hit particularly hard by the shortage to provide short-term bailouts. The company says it has created a chip design team at one of Ireland’s own factories to dedicate manufacturing capacity to the automotive chips division and help others adapt their designs to use Intel’s manufacturing capacity. He said.
Intel said it expects sales to reach $ 19.2 billion this quarter. Wall Street forecasts sales of $ 19.4 billion during this period. Full-year sales should reach $ 77.7 billion, according to Intel.
Intel also said Chief Financial Officer George Davis will retire in May.
Intel’s boss has also been working since February to help restore the company’s competitiveness. After years of failure.. He planned in July that Intel would introduce at least one new, more advanced central processing unit (the brains of modern computers) each year until 2025.
Write in Meghan Bobrowsky at Meghan.Bobrowsky@wsj.com
Correction and amplification
Intel’s share price closed Thursday, rising 1.14%. In previous versions of this article, Wednesday was incorrectly mentioned. (Corrected on October 21)
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Intel’s revenue from lack of components, crackdown on Chinese video games
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