While warning to lay off the staff, Intel decided to cut down its full-year revenue forecast but their personal computers segment send higher share than expected.
Shares crossed 5% trade in after-hours and estimated slump is 47% till today in this year, index indicates the underperformance for both S&P 500 and SE Semiconductor index.
The company’s chief executive officer, Pat Gelsinger, said the cutback to fourth-quarter guidance reflects economic uncertainty, which is expected to continue next year, and the company expects to Said they are spending time to increase their data center sales, which are down 27%. in the third quarter.
Intel also lowered its investment forecast for this financial year to his $25 billion (around Rs.2059 crore) from his previous $27 billion (around Rs.224 crore). When asked about the potential layoffs, Gelsinger told Reuters that “people actions” are part of its cost-cutting plan. 7 trillion rupees) in cost savings.
Therefore, increasing the efficiency of the factory network is much more important to the economy than labor costs.He said the adjustment will start in the fourth quarter, but Intel’s workforce will be less than
at the end of 2020. There were 110,600 as of today, up from 131,500 in early October this year.
Macro headwinds are clouding the outlook for his PC and data center markets, which are big markets for Intel. Kinngai Chan, at Summit Insights Group said.
Intel’s Client Computing Group revenues supporting his PC sales rose to $8
USD 7.7 billion (approximately Rs 63,420) in the second quarter compared to USD 1 billion (approximately Rs 66,700) in the third quarter.
Chan also expresses the reasonable loss of data center share nextThursday, Amazon reported lower than analysts’ expectations for earnings from its AWS cloud business. Earnings increased by 28% to his $20.5 billion (approximately Rs 1.6885 trillion).
AWS and other cloud service providers are big customers of chip makers, including Intel, and are key to revenue growth.
Gelsinger told that they lost Intel market share in third quarter again.
further he also cleared that the latest production has not shipped now but they are planning increase this shipment in context of full production. But he said Intel increased its market share of his PC segment “significantly” in the third quarter.
Rising inflation has hit demand for computers and other equipment, forcing electronics companies to cancel orders for chips and other components as they struggle to clear inventories. Counterpoint his research data shows that his PC shipments of 4,444 units fell 15.5% in the third quarter.
Intel expects the PC market to decline to mid-to-late teens in 2022.
Still he Gelsinger predicts the size of the market (the market the company tracks) that Intel predicts will be from 270 million to 295 million units in 2023 said it does.
The company now has an annual turnover in 2022 of he US$ 65 million (Rs. 5,35,370 crore) from he was previously estimated at US$ 68 billion (approximately Rs. 5,60,110 crore).
It was originally projected to be around $76 billion (approximately Rs.626,000). According to Refinitiv data, on average the analyst expects annual revenue of $65.26 billion (about Rs 537,540).
