Intel revealed its financial results for the first quarter of 2022 at the end of April. The semiconductor manufacturer posted a drop in its turnover, but exceeded analysts’ expectations. He also estimates that the shortage of semiconductors will not end until 2024.
A lackluster quarter at Intel
The California-based company generated $18.4 billion in the first quarter of 2022. This is 7% less than the previous year in the same period, but it remains above analysts’ forecasts of $18.1 billion. According to Refinitiv. The company’s profit margin is 50.4%, 4.8% lower year-on-year.
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In the first quarter of 2022, the manufacturer made 8.1 billion in net profits. That’s a 131% increase. In comparison to the end of the first quarter of 2021, the company announced a net profit of 3.4 billion dollars.
Customer service for computers remains Intel’s most profitable branch with 9.3 billion dollars in the first quarter of 2022 despite a 13% drop over the rolling year.
The division responsible for chips for data centers and artificial intelligence groups brought in $6 billion. Chips for telecommunications services generated $2.2 billion and sales of graphics chips reached $219 million.
Mobileye, the autonomous vehicle branch of Intel, continues its development and shows a growth of 5% compared to the first quarter of 2021. With 394 million dollars reported in the last quarter, the company hopes to soon be able to put its robotaxis into service in Israel and Germany.
” Intel Delivered Strong First Quarter Financial Results and We Reaffirm Our Full Year Revenue Guidance said David Zinsner, Intel’s chief financial officer.
The shortage continues
The shortage of semiconductors driven in part by the strong demand for computers at the start of the pandemic is not about to stop. ” We expect the industry to continue to struggle through at least 2024 in areas such as foundry capacity and tool availability “, explains Pat Gelsinger, general manager of Intel.
Intel’s foundry services are doing well and generated $283 million in the first quarter of 2022, up 175% year-on-year. However, the manufacturer faces stiff competition. AMD (Advanced Micro Devices), its direct competitor, continues to gain market share each year thanks to a much more innovative range than those offered by Intel.
The company is confident and affirms (pdf) that there is ” a trillion dollar market opportunity ahead of them “. For the second quarter of 2022, Intel expects revenue of $18 billion and hopes that figure will reach $76 billion by the end of the fiscal year.