Chipmaker Intel forecasts quarterly revenue below estimates
(Reuters) -Intel forecast quarterly revenue below market estimates on Thursday as it grapples with uncertain demand for its chips used in the traditional server and personal computer markets.
The Santa Clara, California-based company's shares fell about 6% in extended trading.
A shift in spending to artificial intelligence data servers, dominated by rivals Nvidia (NASDAQ:NVDA) and aspiring AI competitor AMD (NASDAQ:AMD), has sapped demand for traditional server chips — Intel (NASDAQ:INTC)'s core data center offering.
Intel is one of the largest suppliers of PC chips by market share. Its weak forecast dampens hopes of the PC market recovering after some signs that the post-pandemic slump was over.
During the fourth quarter, PC shipments saw a year-on-year decline for the eight consecutive quarter, according to data from research firm Counterpoint.
The Santa Clara, California-based company expects adjusted first-quarter revenue in the range of $12.2 billion-$13.2 billion, compared with analysts' average estimate of $14.50 billion, according to LSEG data.
The company forecast first-quarter adjusted earnings of 13 cents per share, compared to estimates of 33 cents.
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