Intel PC Chip Sales Rise As Profit Forecast Falls Short
Intel has raised its annual sales outlook on booming demand for personal computers, but it expects a lower Q2 profit, as the company spends heavily to get its manufacturing operations back on track and catch up to rivals with faster chips.
Intel has had problems developing new manufacturing technology in recent years, causing it to fall behind rivals such as AMD and Nvidia in the race to make faster, smaller chips.
Intel said its PC chip business had sales of US$10.6 billion in Q1. It expects 2021 adjusted revenue and profits of US$72.5 billion, with Q2 adjusted revenue and profits of $17.8 billion.
Intel CFO George Davis told Reuters the lower profits are because the company is investing in ramping up its new 10- and seven-nanometre manufacturing technologies.