Intel, which suffered a decrease in sales and lost billions

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Intel posted a quarterly loss of $2.8 billion after breaking out of $8.1 billion a year ago. It was the highest minus ever for the group, which had long been accustomed to success. Intel announced that revenue fell 36 percent year-on-year to $11.7 billion after the U.S. stock market closed on Thursday.

On the one hand, Intel is battling the cooling of the PC market after the outbreak’s start-up – sales of processors for laptops and desktops fell 38 percent to $5.8 billion. But technology for data centers has also dropped: the division’s sales fell 39 percent to $3.7 billion. Intel has lost market share in its lucrative business space to smaller rival AMD.

Intel’s auto company Mobileye, which specializes in assistive systems and technology for autonomous driving, was a bright spot, with sales up 16 percent to $458 million.

Intel boss Pat Gelsinger is trying to get the industry giant back on track after delays and other issues with new processor generations. Among other things, his plan includes making Intel more of a contract manufacturer for other chip suppliers. The group also wants to expand its European capacities with a factory in Germany. This costs tens of billions of dollars, some of which are said to come from government subsidies.

Intel expects revenue between $11.5 and $12.5 billion for the current quarter, again with red numbers. However, Gelsinger hopes the business world will recover in the second half of the year. Among other things, it is becoming obvious that high chip stocks will be gradually reduced. After the bottlenecks in the pandemic, many manufacturers hid semiconductors to be on the safe side.

The stock took a roller coaster ride after the quarterly report. First, after-hours trading rose four percent—as analysts had expected even worse numbers. It turned negative a little later and lost a good 1.5 percent. But Gelsinger encouraged investors with his optimistic statements, and the stock traded almost five percent higher after hours.

(SDA)

Source :Blick