Intel expects revenue for the first quarter, higher than expected earnings as PC chip sales see some recovery

Intel Corp expected first-quarter revenue and profits to exceed Wall Street expectations Thursday, continuing to benefit from it from strong demand for laptops, PCs and servers, which have encouraged the transition to work and play from home.

Intel said the fourth quarter sales from According to data from FactSet, its PC chip business was $ 10.9 billion, compared with analysts’ estimates of $ 9.57 billion. Sales of the data center group, which have fueled Intel’s growth in recent years, were $ 6.1 billion compared to analysts’ estimates of $ 5.48 billion, according to data from FactSet. Intel, the largest maker of data center and PC processing chips for decades, grapples with technological delays in its manufacturing operations and said in July it was debating whether to outsource more of its 2023 product line. they should give the details of the decision in a conference call today at 5 p.m. ET.

The company last week named VMware Inc’s Pat Gelsinger as its incoming CEO starting February 15, and on Thursday it did not provide a full-year sales forecast as in years past. Intel is one of the few semiconductor companies left to design and manufacture its own products, with rivals like Advanced Micro Devices having long turned to outside factories like Taiwan Semiconductor Manufacturing Co to make their chips.

After struggling with delays with its 10-nanometer chip manufacturing technology, Intel has lost its lead in producing the smallest and most energy-efficient chips to TSMC and Samsung Electronics Co Ltd. Analysts believe that The setbacks to Intel’s next-generation 7-nanometer chip manufacturing technology revealed in July ensured that the gap could persist for years to come. Intel has regained some momentum in the PC market, with PC chip volumes up 33%, a larger increase than the overall PC market shipments increase of 26% in the same quarter, according to data. from IDC.

The chipmaker said it expects adjusted sales of $ 17.5 billion and adjusted earnings per share of $ 1.10, compared to analyst average estimates of $ 16.06 billion and 93 cents per share, according to the data. IBES from Refinitiv. The company reported fourth-quarter revenue of $ 20 billion, beating estimates of $ 17.5 billion.

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News Highlights:

  • Intel Corp expected first-quarter revenue and profits to exceed Wall Street expectations Thursday, continuing to benefit from it from strong demand for laptops, PCs and servers, which have encouraged the transition to work and play from home. Intel said the fourth quarter sales from According to data from FactSet, its PC chip business was $ 10.9 billion, compared with analysts’ estimates of $ 9.57 billion.
  • Intel expects revenue for the first quarter, higher than expected earnings as PC chip sales see some recovery