The plummeting economy and global chip shortage are hurting every tech company. Intel also suffered heavy losses due to the chip shortage and published its second fiscal quarter report. The report showcases that Intel’s business is down and is hurting the company’s profits. Yesterday, Microsoft published its earnings with many underperforming products and services.
Intel is also working on the 13th gen processor and the Intel Arc GPU, which seems to have many problems before its launch. The GPU was supposed to be the best budget card in business, but it hasn’t displayed such traits.
The most significant impact is on the traditional core PC and server chip businesses. Both of them suffered heavy losses, which are in double-digits. The PC chip revenue declined 25% to $7.7 billion. On the other hand, the sales in the data center chip segment fell 16% to $4.6 billion. According to the Intel CEO, the second quarter’s earnings were below standards, and they will work hard to improve them in the next quarter.
“We are responsive to changing business conditions, working closely with our customers while focussing on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation, ” said Pat Gelsinger, Intel CEO. Meanwhile, Intel partnered with many brands, including Accenture, Lockheed Martin, Amazon AWS, Nvidia, and Meta, to supply various hardware.
The upcoming Raptor Lake CPU series will launch in the fall. Its predecessor, the Alder Lake series, is registering good sales. A reason for that is the fact that it is the most powerful processor that the company launched in the last five years. However, the Intel CEO expects the supply chain constraints and chip shortage to affect the business till 2024.