Intel reports lower overall revenue in Q1 2022

The Client Computing Group (CCG) or Intel’s Client Computing Group presented its financial results a few days ago. Bad news for the number one semiconductor company, which saw its net profit fall by 13% compared to 2021.

While the chip market is booming, the PC market is collapsing. And the microprocessor giant is no exception to the rule. Indeed, the CCG, the group’s largest business segment, is posting much more catastrophic results than expected. In fact, analysts expected a turnover of 13.2 billion dollars for an actual result of $9.3 billion.

So even though all of the Santa Clara firm’s other business divisions have seen improvements and the No. 1 in semiconductors has recorded record revenues in its networks and edge divisions as well as in its Mobileye and foundry businesses, this drop in income harms its overall activity. In figures, Intel recorded a 7% drop in revenue compared to the first quarter of 2021.

Despite everything, Pat Gelsinger, CEO of the firm believes that the company is doing well with a quarterly turnover of 18.4 billion dollars. Which can still be translated as an excellent start to the year. In addition, the company plans to expand its manufacturing to the United States and Europe very soon. Moreover, even if the semiconductor market still faces the problems of supply chain, its 12th generation Alder Lake chip still appeals as much. As a result, more than 250 designs are planned for this year.

A successful first quarter for other Intel divisions

Intel’s second largest business segment, the Data Center Group and theartificial intelligence which deals with server chips rose 22% to $6 billion.

The Network and Edge (Nex) group or the network and edge division also recorded revenue growth of 23% to $2.2 billion. Intel Foundry Services also recorded an increase of 175% compared to the previous year. Its figure is now estimated at 283 million dollars.

As for mobileye, its revenue rose 5% to $394 million. Note that Mobileye’s True Redundancy detection system for autonomous vehicles should pave the way for a new robotaxi service planned for Israel and Germany.

Finally, accelerated computing systems and Graphis also recorded an increase of 21% to reach 219 million dollars.

What forecast for the second quarter?

Despite the macroeconomic factors and the drop in revenues from the activity linked to the weakness of products, the experts predict a fairly satisfactory second quarter with a turnover of 18 billion dollars and a gross margin of 48%. And this, even if this forecast is 3% lower than that of the previous year.

On the PC business side, revenues are expected to substantially improve in the second trimester. While the data center and AI segments will continue to show good results.

Nevertheless, David Zinsner, Intel’s chief financial officer, says the group remains cautious in the face of supply constraints in components linked to the blockages in Shanghai. Additionally, if its hangs last longer, it could negatively impact 2022’s TAM PCs. customer demand. A first for 5 years.

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Intel reports lower overall revenue in Q1 2022


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