The technology company Intel shared the financial report for Q2 2022, and the numbers are way below the chipmaker’s expectations. Intel’s shares also sank drastically, about 10%, following the release of the report.
The American company’s revenue declined by 22% (GAAP) during the three-month period year-over-year. Intel also included its Non-GAAP earnings in the report, showing a 17% decline in revenue. This is still a big loss and the biggest disappointment chipmaker faced —financially— since 1999, per Refinitiv’s data. The report also shows a 20.6% decline (GAAP) in gross margin.
Intel’s CEO Pat Gelsinger said the results were below the standards the firm set for itself and its shareholders. Gelsinger added, “The sudden and rapid decline in economic activity was the largest driver of the shortfall but Q2 also reflected our own execution issues in areas like product design and the ramp of AXGofferings.”
The CEO also said “Intel must and will do better” and assured everyone that the company’s performance will improve in the upcoming periods.
With pretty much everything going south, Intel lowered its full-year expectations, and the US-based tech giant is now aiming for $65 to $68 billion in earnings in 2022. The company initially set out for $76 billion, and most reliable analysts expected the company to hit the mark or slightly below.
PC sales across the world saw the sharpest decline in years, which had an effect on Intel missing its financial targets. The company’s PC chip revenue saw a 25% decline to $7.7billion in Q2 2022.