Santa Clara chipmaker Intel forecasts lower quarterly profit, weaker chip demand

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Santa Clara chipmaker Intel forecasts lower quarterly profit, weaker chip demand

Late on Thursday, the 23rd of April 2020, the Santa Clara, California-based semiconductor industry megalith, Intel Corp., had forecasted that its Q2, 2020, operating profit would likely to dive below Wall St. estimates citing a sluggish demand in the global chipmaking industry stemmed from the en masse shutdown measures adopted by more than half of the world’s population in a bid to contain the pandemic outbreak.

Aside from that, the Santa Clara-based American multinational semiconductor industry titan, which had been leaning more on to data-centre chips business over the recent past for a lion-share of its revenues amid slack demands of personal computer chips, had also added in its Thursday’s (April 23rd) statement that the company would not disclose its full-year profit forecast this year given the extent of economic uncertainties whirling around the pandemic outbreak across the globe.

Besides, followed by Intel Corp.’s Thursday’s (April 23rd) downcast yearly projection, which had taken a heavy toll on other chipmakers’ stocks as well such as Nvidia Corp., Micron Technologies, AMD (Advanced Micro Device) and Applied Materials with all of them winding down the day 1% to 2% lower in after-market trading, shares’ prices of the California-based chipmaker fell by as much as 6 per cent to $55.50 per share in post-market trading after rounding off the day 1.76 per cent lower to $59.04.

Apart from that, according to Intel Corp.’s Q1, 2020, earnings’ report that released on Thursday (April 23rd), the company’s high profit margin data centre business had reported a 43 per cent upsurge in revenues to $7 billion from an earlier $6.32 billion, while the American chipmaker’s client computing business revenue rose by 14 per cent to $9.8 billion, beating an analysts’ estimate of $9.34 billion.

Nonetheless, Intel now anticipates its second-quarterly profit to be $1.10 per share, 8.31 per cent down from an analysts’ estimate of $1.19 per share, IBES data from Refinitiv reveals.