Intel sales forecast implies rocky second half of 2021

hardware, intel, The 2021 forecast of US$73.5 billion

Intel Corp said it still faces supply chain constraints and gave an annual sales forecast that implied a weak end of the year.

The 2021 forecast of US$73.5 billion in adjusted sales was higher than Wall Street expectations, appeared driven by a strong second quarter ended 26 June and a modestly better-than-expected third-quarter, implying a weak fourth quarter. The results sent shares down 2.8 percent in after-hours trading after the results.

Intel, one of the few remaining companies in the processor chip industry that both designs and manufactures its own chips, has been able to weather the supply chain woes better than some rivals and is also working to build a business of making chips for others, called a “foundry” business.

Intel CEO Pat Gelsinger declined to comment on a recent report that Intel is looking to buy GlobalFoundries for US$30 billion to bolster its foundry efforts but told Reuters that he expects industry consolidation to continue and that “M&A will remain a part of our strategy” for building the company’s foundry business.

Intel raised its previous annual forecast US$1 billion from its earlier US$72.5 billion and beat expectations of US$72.80 billion, according to Refinitiv IBES data. Intel expects adjusted third-quarter revenue of about US$18.2 billion, only modestly above estimates of US$18.09 billion, according to Refinitiv data.

“I think investors simply expect more from semiconductor companies in this environment,” said Logan Purk, an analyst at Edward Jones “Even though they did increase revenue guidance, it was only about a 1 percent increase. A bulk of the change in earnings guidance was due to a lower tax rate.”

Gelsinger said Intel could sell more chips if it could make more chips. Even though the company runs its own factories, it still faces supply constraints from its own suppliers of materials and equipment.

“We are helping them build factories as fast as they can,” Gelsinger told Reuters. “But it will be one of those things that just takes a couple years to fully catch up to this explosive demand we’re seeing, and we have better tools to address it than others.”

But some analysts do not agree with Intel’s rosy view of end demand. Citing a tame forecast this week from Texas Instruments Inc, Kinngai Chan, analyst at Summit Insights Group, disputed Gelsinger’s view of the market and said Intel was likely to keep “playing defense” against rivals like AMD with better chips.

“We think the entire semiconductor supply chain will be caught up by 4Q21 as we believe there’s rampant double ordering in the supply chain coupled with a moderating end-market demand,” Chan said.

For the just-ended second quarter, Intel reported US$18.5 billion in adjusted sales, well above analyst estimates of US$17.80 billion, according to Refinitiv data.

Taking the second and third quarter into account, Angelo Zino, analyst at CFRA Research, said that Intel’s slightly higher full-year forecast implied a shortfall in fourth-quarter sales versus previous forecasts – despite the fourth-quarter usually being one of the company’s best quarters as consumers snap up laptops and PCs as holiday gifts. Intel did disclose that a one-time charge of US$300 million will hit the fourth quarter, saying it was related to its business of selling supercomputers to the U.S. Federal Government.

Gelsinger, however, told investors on a conference call that he expects the PC market to keep growing into 2022, contradicting the predictions of some analysts.

Revenue from the company’s higher-margin data center business fell 9 percent to US$6.5 billion in the second quarter, while its personal computing business revenue rose 6 percent, both beating Refinitiv estimates.

On an adjusted basis, the company earned US$1.28 per share in the second quarter, compared with estimates of US$1.06, according to Refinitiv data.

(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Shounak Dasgupta and Diane Craft)

News Related

OTHER NEWS

As Maha Set to Unlock Doors of Theatres, Multiplexes & Religious Places, Here's an Updated 'Open or Shut' Guidebook

© Provided by News18 As Maha Set to Unlock Doors of Theatres, Multiplexes & Religious Places, Here’s an Updated ‘Open or Shut’ Guidebook As the result of the plateauing of ... Read more »

Slow Wi-Fi? Follow These Steps To Make Your Wi-Fi Connection Faster

© Provided by News18 Slow Wi-Fi? Follow These Steps To Make Your Wi-Fi Connection Faster Slow internet is the worst thing to happen to anyone in today’s connected world. There ... Read more »

Covid certificates to mention date of birth of fully vaccinated people travelling abroad

© Provided by Hindustan Times A Covid vaccination certificate currently contains the age of the beneficiary, not the full date of birth.  (AP) Amid the India-UK tussle over the vaccination ... Read more »

Proud moment for India! World's highest electric vehicle charging station inaugurated in Spiti

© Provided by Zee News New Delhi: The world’s highest electric vehicle charging station has been inaugurated on Thursday in Kaza of Lahaul and Spiti district in Himachal Pradesh. Situated ... Read more »

Imlie, September 25, 2021, Written Update: Court dismisses the case

© Provided by Pinkvilla As the episode starts, Aditya speaks about the bet that Imlie and Anu had. He can’t believe that Imlie would agree to such a thing and ... Read more »

'Modernised, transparent and competitive': Amit Shah reveals new plan at first National Cooperative Conference

© Provided by Firstpost ‘Modernised, transparent and competitive’: Amit Shah reveals new plan at first National Cooperative Conference Union Home Minister Amit Shah, who is also the first minister of ... Read more »

IPL 2021, DC vs RR LIVE Score Updates: No Morris for Rajasthan, Shamsi makes debut

© Provided by Firstpost IPL 2021, DC vs RR LIVE Score Updates: No Morris for Rajasthan, Shamsi makes debut 15:14 (IST) RR XI: Yashasvi Jaiswal, Sanju Samson, Liam Livingstone, David ... Read more »

Meet Sneha Dubey, the young diplomat hailed for her fiery response to Pakistan's Imran Khan at UN

© Provided by Firstpost Meet Sneha Dubey, the young diplomat hailed for her fiery response to Pakistan’s Imran Khan at UN India denounced Pakistan as a patron of terrorism and ... Read more »

'Instantly recognisable' cottage in former 200 year old shops for sale

Former shops that made up a ‘key part of the community’ are now up for sale as a residential cottage. For almost two centuries the Victorian Cottage was two community ... Read more »

FIFA 22 Web App release date live: What time does FIFA FUT Web App come out UK?

© EA SPORTS FIFA 22 Web App release date news UPDATE TWO: The FIFA 22 Web App is expected to go live at any moment, providing gamers with their first ... Read more »

A happy baby on a train: Dina Alfasi's best phone picture

Dina Alfasi has often said that her favourite place to shoot is on the train. It’s not only a mobile studio with, as she puts it, great natural light and ... Read more »

Google Maps catches a man ‘doing a poo' on a car roof and it is truly a sight to behold

© Getty Images/iStockphoto iStock-920960746.jpg An eagle-eyed internet user has spotted what appears to be someone doing a poo on a Google Maps still and we just feel sorry for the ... Read more »

Merkel makes last ditch bid to boost would-be successor's campaign

© Provided by Daily Mail MailOnline logo Angela Merkel has made a last-ditch effort to boost support for her would-be successor’s beleaguered campaign ahead of an election deemed too close ... Read more »

‘Position of strength': Nationals urge greater climate ambition for Glasgow summit

Former Nationals leader Michael McCormack and senior Victorian MP Darren Chester are urging party colleagues to back greater climate action to ensure Australia can remain relevant on the international stage. ... Read more »

Phil McCann: BBC presenter's name sparks jokes online after he is sent to cover petrol shortage

© Social media petrol.jpg A BBC presenter became the butt of the joke on social media on Saturday morning after he was sent to cover the petrol shortage. Phil McCann ... Read more »

Jett Kenny is all smiles as he loads up his car with his kayak

© Provided by Daily Mail MailOnline logo Jett Kenny was enjoying the seasonal weather on Saturday.  The lifesaver, 27, was beaming as she loaded up his kayak onto his car as ... Read more »

Melbourne Demons take on Western Bulldogs in 2021 AFL grand final

© Provided by Daily Mail MailOnline logo Melbourne Demons and Western Bulldogs AFL players have arrived at Optus Stadium for the biggest game of their lives ahead of a historic ... Read more »

Prince Charles launches new climate change channel for Amazon Prime

© PA Archive Royal visit to Ireland – Day 2 The Prince of Wales has launched a television channel on Amazon Prime focusing on climate change. The channel, named RE:TV, ... Read more »

SA chip away at WA total in Shield opener

Travis Head has made a promising start as he looked to push his case for a Test cricket recall, helping South Australia’s pursuit of a big Western Australian first-innings score ... Read more »

Man rushed to hospital after early morning Bachelor's Walk assault

© Getty A young man was rushed to hospital following an early morning assault near Bachelor’s Walk. Gardai and emergency services rushed to the scene of the attack, which took ... Read more »

Heart disease: Are you at risk? Simple stairs test could help detect the deadly condition

There are around 7.6 million people living with a heart or circulatory disease in the UK, according to the British Heart Foundation. A study has suggested that an assessment of ... Read more »

PS5 UK Stock: GAME PlayStation 5 restock update, plus EE and Amazon news

© SONY PS5 Stock latest from Amazon and GAME UK UPDATE: Today’s Amazon PS5 restock has now ended, and there is a chance that another PlayStation 5 stock drop will ... Read more »

Kyle Walker reflects on 'brilliant' Centurion achievement with Man City

Kyle Walker has reflected on the season where Manchester City finished the Premier League campaign with 100 points but admits the achievement is still yet to sink in. While at ... Read more »

Households will ‘not be able to cope' amid rising energy and living costs this winter, charity warns

Households will “not be able to cope” amid rising energy and living costs this winter, a charity has warned. Adam Scorer, chief executive of fuel poverty charity National Energy Action, ... Read more »

Sadiq Khan: London battles ‘potential existential threat' post-restrictions

© Provided by City AM London has been “hollowed out” amid the pandemic, which has pushed people away from city centres faster than ever before, London mayor Sadiq Khan has ... Read more »

India to export 8 million Covid-19 jabs in October

© POOL India will resume vaccine exports after Prime Minister Narendra Modi promised Quad allies to send doses to Asia-Pacific countries India will export eight million coronavirus vaccine jabs by ... Read more »

Zimbabwe bolsters emissions targets ahead of climate summit

© Reuters/Philimon Bulawayo FILE PHOTO: A cow stands on caked mud before a small patch of water at a dam near Bulawayo (Reuters) – Zimbabwe has adopted a more ambitious ... Read more »

SA looks to biometrics innovation to curb problem of undocumented children

© Provided by Times Live This was revealed by home affairs minister Aaron Motsoaledi in response to a parliamentary question by IFP MP Liezl van der Merwe earlier this month. ... Read more »

Teacher fired after 14-year-old pupil records him asking for sex

© Provided by SowetanLive The Welkom Preparatory School teacher was fired on Wednesday when the Education Labour Relations Council (ELRC) found him guilty of committing an act of sexual assault ... Read more »

Afghans Wait in a New Jersey ‘Tent City' to Start a New Life

They call it Liberty Village, a tent city that grew almost overnight to where it is now has a population larger than half of the towns in New Jersey. © ... Read more »

DICT: 138,000 vaccination certificates issued since VaxCertPH soft launch

dict logo More than a hundred thousand standardized COVID-19 vaccination certificates have been issued since the soft launch of VaxCertPH early this month, the Department of Information and Communications Technology ... Read more »

UK fuel crisis: Government expected to make U-turn on foreign worker visas

Britain is expected to announce plans to issue temporary visas to truck drivers to alleviate an acute labor shortage that has led to fuel rationing at some filling stations and ... Read more »

Biden's domestic agenda, Germany's election, the Tonys: 5 things to know this weekend

© Georg Wendt, AP German Chancellor Angela Merkel feeds Australian lorikeets at Marlow Bird Park in Marlow, Germany, Thursday Sept. 23, 2021. (Georg Wendt/dpa via AP) House Budget Committee to discuss ... Read more »

Far-out fleet from Mad Max up for sale in Australia

If you need a ride fast enough to outpace the apocalypse, a rare auction in Australia is selling a menacing fleet of vehicles from “Mad Max: Fury Road” for any ... Read more »

Illinois Democrats' Gerrymandering Is a Partisan Disgrace

Days ago, Stacey Abrams spoke to a crowded ballroom at a Chicago Foundation for Women event. “When you break democracy for anyone, you break it for everyone,” she said. © ... Read more »

Arizona Governor Hits Back at Donald Trump Over Audit: 'No Decertification'

Arizona Governor Doug Ducey has said there will be “no decertification” of the state’s 2020 presidential election results following an audit in Maricopa County that was highly anticipated by supporters ... Read more »

Blue Origin plans to blast William Shatner into space on its New Shepard rocket in October, reports say

© Provided by Business Insider At 90 years old, William Shatner would be the oldest man to ever be launched into space. Photo by Axelle/Bauer-Griffin/FilmMagic “Star Trek” actor William Shatner ... Read more »

COVID vaccines for younger kids could be the secret to ending the U.S. pandemic

On Monday, Pfizer announced that its COVID-19 vaccine is both safe and effective in children ages 5 to 11 — and no less of an authority than Dr. Anthony Fauci, ... Read more »

China pledges to limit emissions of coolant that swells greenhouse gases

© Reuters/CARLOS GARCIA RAWLINS FILE PHOTO: Closing session of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing SHANGHAI (Reuters) – China will take action to control emissions of HFC-23, ... Read more »

Tycoon boss hands workers bonuses worth up to £20,000 as he gives away fortune

A few years ago, Richer Sounds founder Julian Richer was a Tory donor with a private jet, a couple of helicopters and several hundred ­million pounds to his name. Now ... Read more »