Intel gives disappointing forecast, signs comeback may be slow

(Bloomberg) — Intel Corp., the biggest maker of computer processors, fell in late trading after giving a disappointing forecast for the current period, suggesting it may be looking to protect its once-dominant position in data center chips. Is continuing to struggle for.

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The company said in a statement Thursday that first-quarter sales will be $12.2 billion to $13.2 billion. That compares with the average analyst estimate of $14.25 billion, according to data compiled by Bloomberg. Profit would be 13 cents a share, net of certain items, compared with estimates of 34 cents.

The outlook shows that Chief Executive Officer Pat Gelsinger still has a long way to go to restore Intel’s former strength. Although the chipmaker’s PC business is recovering, it is losing ground in the lucrative market for data center chips. The company is grappling with weak demand at units that make programmable chips and components for self-driving vehicles, as well as outsourced production efforts.

Intel shares fell more than 6% in extended trading after the announcement. The stock was already down 1.4% so far this month, lagging a 7.1% gain by the closely watched Philadelphia Stock Exchange Semiconductor Index.

Nvidia Corp and Advanced Micro Devices Inc remain the stock-market darlings of the chip sector, as investors expect they will benefit most from increased spending on artificial intelligence-related infrastructure.

Santa Clara, California-based also said it was looking for ways to tighten its belt. “We expect to achieve even greater efficiencies in 2024,” Chief Financial Officer David Zinsner said in the statement.

Intel’s gross margin – the share of sales remaining after deducting costs…

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