Sumary of Intel says chip shortage could drag into 2023:
- shares weakened in the extended session Thursday after the chip maker’s outlook barely surpassed the Wall Street consensus while forecasting the global chip shortage could last well into 2023. Intel INTC, -0.48% shares fell more than 3% in the extended session, following an initial 3% uptick in after-hours trading.
- By the end of the conference call with analysts, shares were down about 2%.
- The stock closed down 0.5% in the regular session at $55.96. For the third quarter, Intel forecast revenue of about $19.1 billion, or $18.2 billion when removing the memory business, and GAAP earnings of $1.08 a share and non-GAAP earnings of $1.10 a share.
- Analysts on average expected adjusted third-quarter earnings of $1.09 a share on revenue of $18.11 billion.
- On the conference call, Intel Chief Executive Pat Gelsinger told analysts he expects chip shortages to bottom out in the second half of the year, but that it will take “another one to two years before the industry is able to completely catch up with demand.
- ” On Wednesday, Texas Instruments Inc. TXN, -5.32% kicked off earnings season for U.S. chip makers, topping Wall Street estimates but confusing some analysts with a conservative guidance amid a global semiconductor shortage.
- As chip makers, like Texas Instruments and Intel, invest more in foundry capacity and ramp up production, investors don’t want to see a repeat of 2018, when high chip demand quickly turned into a supply glut after customers double- or triple-bought chips as prices rose and chip makers kept on producing product.
- Intel reported second-quarter net income of $5.06 billion, or $1.24 a share, compared with $5.11 billion, or $1.19 a share, in the year-ago period.