BENGALURU, India (Reuters) – Intel on Thursday cut its 2022 revenue forecast for the second time this year as slumping demand for PCs appears to worsen and recession fears deteriorate prospects for the data center market.
High inflation has dampened demand for computers and other gadgets, forcing electronics companies to cancel orders for components such as chips as they try to clear inventories.
PC sales dropped 15.5% in the third quarter, Counterpoint Research data showed. The research firm expects a 13% decline for the year, larger than Intel’s estimate of a decline of about 10%.
Chip makers also reflect concerns that the threat of a global recession will drive data center customers to cut back on spending.
Intel’s third-quarter net income was $1.02 billion, or $0.25 per share, compared with earnings of $6.82 billion, or $1.67 per share, a year earlier.
The company now expects annual revenue of $63 billion to $64 billion, up from $65 billion to $68 billion previously estimated. The company’s original forecast was about $76 billion.
Analysts on average expect annual revenue of $65.26 billion, according to Refinitiv data.
(By Chavi Mehta and Jane Lanhee Le)
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