Intel lowers annual revenue forecast on PC demand slump
2022.07.28 23:29
FILE PHOTO: The Intel Corporation logo is seen on a display in a store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly GLOBAL BUSINESS WEEK AHEAD
(Reuters) -Intel Corp lowered its full-year revenue forecast on Thursday as demand for its chips used in personal computers cools off from pandemic highs, sending shares of the company down 5% in extended trade.
It now expects fiscal 2022 revenue between $65 billion and $68 billion, compared with its earlier forecast of $76 billion, as runaway inflation and the reopening of offices and schools lead people to spend less on PCs.
Chipmakers are also under pressure from a spate of COVID curbs in key PC market China and the Ukraine war that have worsened supply-chain snarls and dragged demand further. Global shipments of PCs are expected to drop 9.5% this year, according to IT research firm Gartner (NYSE:IT).
Intel (NASDAQ:INTC) draws about half of its revenue from selling the chips that power desktops and laptops.
In the second quarter, revenue at Intel’s Client Computing Group (CCG), which supplies PC makers and is the largest contributor to the company’s revenue, fell 25% to $7.7 billion.
