Intel sees revenue below Wall Street expectations, shares plunge

192
1
Intel sees revenue below Wall Street expectations, shares plunge

On Thursday, Intel reported third-quarter revenue below Wall Street expectations as it trails behind rivals with faster chips to meet demand for computing devices for hybrid work.

Shares of Intel, one of the world's largest chipmakers, fell 4 per cent in extending trading.

Pat Gelsinger's plan to give the company a makeover is largely seen as beneficial to it in the long term, with shares rising about 11 per cent this year. However, its chip designing rivals like Nvidia and Advanced Micro Devices are racing ahead, grabbing market share by turning to contract manufacturers with better chipmaking technology than Intel's.

The adjusted sales for the third quarter stood at US $18.1 billion, missing estimates of US $18.24 billion.

However, the company forecast fourth quarter revenue slightly above Wall Street expectations.

On Thursday, Intel announced Chief Financial Officer George Davis announced plans to retire in May 2022.

The company expects fourth-quarter revenue of about US $18.3 billion, compared with analysts' average estimate of US $18.25 billion, according to IBES data from Refinitiv.