After the announcement of Intel's earnings report, it plummeted after the market. Demand for PC processors is weakening, the high-profit data center chip business is facing supply chain problems, and the company's revenue guidance falls short of analysts' expectations. Intel announced on Thursday that the fourth-quarter revenue range was between $15 billion and $16 billion. According to Bloomberg's aggregated data, analysts' average expectations were $17 billion, and some forecasts were even higher than $18 billion; excluding specific projects, earnings per share for the quarter were 25 cents, while Wall Street expected adjusted earnings of 43 cents per share. Intel is facing a deep decline in the PC market. Notebook and desktop manufacturers are their core customers. Currently, they are suffering from a shortage of memory chips, soaring component prices, PC shipments are under pressure, and demand for terminals is weakening. Furthermore, CEO Chen Liwu said that the data center business could have performed better, but the shortage of some raw materials and the shutdown of a factory in Israel have dragged down performance, and the company is making every effort to resolve these supply chain barriers. Chen Liwu said in an interview, “I am a bit disappointed because we are unable to meet customer needs.” Speaking about the PC market, he said, “One of the core challenges is memory chips. The price of storage has increased significantly. I anticipate this will be a very difficult problem for everyone by 2027. It wasn't just us that was affected; the entire market was affected.” Intel expects the PC market to continue to be sluggish until at least the first half of 2027; following a 12% decline in 2026, the PC market size will continue to decline by 10% next year. However, in the long run, the company remains optimistic about product demand and is increasing investment in new equipment to expand production capacity. Chen Liwu said that the company is increasingly confident of winning OEM orders from other chip manufacturers to attract customers to use Intel's factory to produce chips.
Zhitongcaijing · 1d ago
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After the announcement of Intel's earnings report, it plummeted after the market. Demand for PC processors is weakening, the high-profit data center chip business is facing supply chain problems, and the company's revenue guidance falls short of analysts' expectations. Intel announced on Thursday that the fourth-quarter revenue range was between $15 billion and $16 billion. According to Bloomberg's aggregated data, analysts' average expectations were $17 billion, and some forecasts were even higher than $18 billion; excluding specific projects, earnings per share for the quarter were 25 cents, while Wall Street expected adjusted earnings of 43 cents per share. Intel is facing a deep decline in the PC market. Notebook and desktop manufacturers are their core customers. Currently, they are suffering from a shortage of memory chips, soaring component prices, PC shipments are under pressure, and demand for terminals is weakening. Furthermore, CEO Chen Liwu said that the data center business could have performed better, but the shortage of some raw materials and the shutdown of a factory in Israel have dragged down performance, and the company is making every effort to resolve these supply chain barriers. Chen Liwu said in an interview, “I am a bit disappointed because we are unable to meet customer needs.” Speaking about the PC market, he said, “One of the core challenges is memory chips. The price of storage has increased significantly. I anticipate this will be a very difficult problem for everyone by 2027. It wasn't just us that was affected; the entire market was affected.” Intel expects the PC market to continue to be sluggish until at least the first half of 2027; following a 12% decline in 2026, the PC market size will continue to decline by 10% next year. However, in the long run, the company remains optimistic about product demand and is increasing investment in new equipment to expand production capacity. Chen Liwu said that the company is increasingly confident of winning OEM orders from other chip manufacturers to attract customers to use Intel's factory to produce chips.
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