The sales and profit forecasts for the second quarter announced by US semiconductor giant Intel on the 25th were lower than market expectations. Photographed in January (2024 Reuters/Dado Ruvic)
Shares fell 8% in after-hours trading to hit their lowest since August of last year ($32.35).
Analysts say demand for image processing semiconductors (GPUs) used in artificial intelligence (AI) applications is surging while demand for Intel’s flagship central processing units (CPUs) is declining. .
Second quarter sales are expected to be between $12.5 billion and $13.5 billion. The market estimate was $13.57 billion.
Adjusted earnings per share forecast is $0.10. The market expectation was $0.25.
The company’s AI chip Gaudi is expected to achieve sales of more than $500 million this year, CEO Pat Gelsinger said. “We basically expect all businesses to do better in the second half of the year.”
“Even if Intel doesn’t deliver quarterly results and promises future improvements, there is some skepticism about whether Intel will be able to deliver on its promises,” said Wedbush analyst Matthew Bryson. did.
Intel is optimistic about PC sales in the second half of the year, as the replacement cycle will begin with the release of a new version of Microsoft’s Windows operating system. Gelsinger said software makers’ next-generation product launches are also expected to boost demand for personal computers and Intel semiconductors.
Total sales for the first quarter were $12.72 billion, slightly below expectations of $12.78 billion. Data center business grew 5% to $3 billion. The foundry (contract manufacturing) business decreased by 10%.
Adjusted gross profit margin rose to 45.1% from 38.4% in the same period last year. This beat the analyst consensus estimate of 44.3%.
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