Intel's Profit Plunges as We Stop Buying All Those PCs

Intel’s own problems, like delays in data center chip upgrades, also were a major factor.

SIG Susquehanna’s Christopher Rolland was equally pessimistic.

Intel’s near-term problems pose real risks to its long-term plans.

The problems led Chief Executive Pat Gelsinger to issue an apology for the company’s poor showing.

“We must and will do better.”

Both results were well below Intel’s own forecasts and analyst expectations.

Including those charges, Intel posted a loss of $454 million.

But that turnaround looks a long way away.

Revenue from Intel’s PC business dropped 25% to $7.3 billion.

Its data center unit’s revenue dropped 16% to $4.6 billion.

Chip futures

Intel expects a grim third quarter, too.

“It’s not the facts we like, but it’s what we see,” Gelsinger said.

Upgraded manufacturing processes remain on schedule or ahead of schedule.

That effort to improve manufacturing dovetails with support for the CHIPS Act in Congress and the White House.

The company expects its prospects to improve in the fourth quarter.

He’s got some convincing to do.