Chipmaker Intel Corp on Thursday cut its 2022 revenue forecast for the second time this year as a slump in PC demand looks set to worsen and recession fears muddy the outlook for the data center market.
Surging inflation has prompted consumers to rethink buying computers and other gadgets, forcing electronics companies to cancel orders for components such as chips as they struggle to clear inventory.
PC shipments fell 15.5 percent in the third quarter, data from Counterpoint Research showed. The research firm expects a 13 percent drop for the full year, higher than Intel's estimate of a roughly 10 percent decline.
Chipmakers have also come under pressure from concerns that the threat of a global recession could prompt clients from the more lucrative data center market to wind down spending.
Net income for the third quarter ended Oct. 1 was US$1.02 billion, or 25 cents per share, compared with a profit of US$6.82 billion, or US$1.67 per share, a year earlier
The company now expects annual revenue of about US$63 billion to US$64 billion, compared with US$65 billion to US$68 billion estimated earlier. Its original forecast was for about $76 billion.
Analysts on average expect annual revenue of US$65.26 billion, according to Refinitiv data.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee; Editing by Devika Syamnath)
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