Intel makes minus: “We’ve hit the ground running”

The chip manufacturer Chip has announced its current quarterly figures – it does not look rosy. After successful years during the corona pandemic, a significant loss has now even to be announced.

The chip giant Intel made a loss of almost half a billion US dollars (494 million US dollars) in the second quarter of 2022. Revenue fell 22 percent to $15.3 billion. A year ago, Intel was able to rake in a profit of 5.1 billion US dollars in the same quarter.

The enormous decline in sales can be explained primarily by the current global situation. A year ago, the corona pandemic ensured that new computers and laptops were bought worldwide for use in the home office. However, this need has now been largely met. Added to this is the current economic uncertainty, which has led to much more cautious buying behavior in many countries since the start of the Ukraine war and high inflation. The need for new hardware has correspondingly decreased significantly.

Intel’s chief financial officer: “Have bottomed out”

Those responsible are disappointed, but are also certain that things can only get better from here. Intel’s chief financial officer, David Zinsner, told CNBC: “We think we’ve bottomed out.” With price increases and seasonal improvements, the gross margin should increase again to 51 to 53 percent.

Commenting on the worrying numbers, CEO Pat Gelsinger said: “The sudden and rapid decline in economic activity was the main reason for the deficit, but the second quarter also reflected our own execution issues in areas such as product design and the ramp-up of AXG (Accelerated Computing Systems and Graphics Group) offers.

Intel’s share price fell significantly after the figures were announced, with the share value falling by almost ten percent today alone.

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