ANN/THE STRAITS TIMES – Intel said on Thursday that it expects to lose money in the current quarter, surprising investors with a bleaker-than-expected outlook for the personal computer (PC) market and slowing growth in its key data centre division.
The company’s shares fell 9.5 per cent in trading after the bell.
“We stumbled, right, we lost share, we lost momentum. We think that stabilises this year,” Chief Executive Pat Gelsinger told investors on a conference call. He said Intel has been losing market share in the data centre market, a nod at the strength of rival Advanced Micro Devices (AMD).
Intel expects profit margins to fall further after dropping from 58.4 per cent in the fourth quarter of 2020 to 43.8 per cent in the fourth quarter of 2022.