Santa Clara chipmaker Intel raises full-year profit forecast as PC chip sales soar

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Santa Clara chipmaker Intel raises full-year profit forecast as PC chip sales soar

Later this week, Intel Corp., the Santa Clara, California-based American multinational chipmaker, had missed quarterly profit estimate amid an unprecedented rise in manufacturing costs, however, had raised full-year profit forecast amid a ballooning demand for personal computer chips in context of stiffer pandemic restrictions on a number of major G20 economies including India, Brazil alongside France, whose healthcare infrastructures seem to be on the brink of a baleful collapse.

Nevertheless, apart from a rise in manufacturing costs amid a steeper-than-anticipated supply-crunch in raw materials, an increase in expenses to put Intel Corp.’s manufacturing operation back into the track, had largely offset the gains stemming from a higher demand of personal computers.

Besides, as Intel Corp.’s shares were plunged as much as 3.1 per cent to $60.60 apiece in late-afternoon trading following release of its quarterly earnings’ report, several analysts raised questions on the Santa Clara chipmaker’s ability to counter local rivals which had claimed to have developed faster and smaller chips.

NYSE-listed shares’ prices of Intel Corp., in tandem, had wrapped up Friday’s Wall St. 5.32 per cent down to $59.32 apiece after faltering as much as 6.52 per cent in pre-market trading.

Intel Corp. raises full-year profit forecast

On top of that, according to Intel Corp.’s quarterly earnings’ report for its fiscal first quarter that ended on March 27, the California-based chipmaker had reported a sales figure of $18.6 billion, above from an analysts’ estimate of $17.89 billion in the quarter, while the semiconductor industry mogul’s net income on an adjusted basis stood at $1.39 per share, well above Wall St.

forecasts of $1.15 per share. Meanwhile, as the chipmaker was heavily banking in on a meteoric rise at its data centre business amid a sharp pickup in work-from-employees, Intel Corp. had raised its full-year revenue forecast to $72.5 billion.

Besides, since Intel Corp. has been expecting to generate an operating profit of $4.60 per share in 2021, Intel Chief Executive Patrick Gelsinger who had returned to Intel Corp. earlier this year, said in a post-earnings conference call with the reporters, “We were able to satisfy our customer commitments, as we expect that we'll be able to do through the rest of the year.

If we are able to gain more leverage in our supply chain, which we have lots of tools to go do, I expect we'll both have beat our guidance for the year and gain more market share for the year”. Gelsinger was also quoted saying that the Californian chipmaker was working out a massive expansion strategy in bids to narrow down Intel's gap with larger peers.