Intel CEO Pat Gelsinger (pictured) stated its performance in Q2 fell below the company’s and shareholder’s standards as the chipmaker posted a net loss on lower revenue.
On an earnings call, Gelsinger blamed a rapid decline in economic activity as the largest factor in Intel’s Q2 performance, but acknowledged the numbers also reflected problems with execution.
It fell from a $5 billion profit in Q2 2021 to a $454 million loss, with revenue down 22 per cent to $15.3 billion
Intel’s Client Computing Group, which includes PC chips, generated revenue of $7.7 billion in revenue, down 25 per cent. Its Datacentre and AI division, which delivers server chips; accelerators; memory; and field-programmable gate arrays, was down 16 per cent to $4.6 billion.
The Network and Edge segment generated $2.3 billion in revenue, up 11 per cent.
The company could benefit from the passing of revised US legislation covering subsidies to bolster domestic production of chips: Intel reportedly halted construction on a $20 billion chip plant in Ohio as it waited for politicians to advance the bill, which was first proposed in 2021.Subscribe to our daily newsletter Back