Intel’s Forecast Disappoints, Signaling Dimmer PC Demand
- First-quarter server chip sales also fall short of estimates
- Shortfall is a setback to Gelsinger’s ambitious revival plans
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Intel Corp., the world’s biggest maker of computer processors, gave a disappointing second-quarter sales and profit forecast, indicating weaker demand for its chips across the board. Shares slipped in late trading.
Profit in the second quarter will be 70 cents a share, excluding some items, Intel said Thursday. Revenue will be about $18 billion. Those targets fell below average analysts’ estimates of 82 cents on $18.5 billion in sales, according to data compiled by Bloomberg. Gross margin, a measure of profitability that represents the percentage of sales left after deducting production costs, will be 51%.