(Reuters)-Intel said Thursday plan for a turnover for the current quarter lower than Wall Street expectations, throwing a shadow over the first weeks of Lip-Bu Tan at the head of the group and fueling concerns about the repercussions of the Sino-American trade war.
These gloomy forecasts could also strengthen the pessimism of investors, who counted on the new managing director to straighten the bar after several years of mismanagement which saw Intel distant in the race for artificial intelligence (AI).
The title of the group based in Santa Clara, California, plunged almost 6% in post-clothing stock exchanges.
Intel anticipates turnover between 11.2 billion and 12.4 billion dollars in the second quarter, against a consensus which appeared at $ 12.82 billion according to LSEG data.
“The current macro environment created an uncertainty high through industry, and this is reflected in our forecasts,” said the group’s financial director David Zinsner in a statement.
While LIP-BU Tan intends to implement a reorganization plan to streamline operations and lighten costs, Intel has tightened its operating expenses for this year more, about $ 17 billion against $ 17.5 billion before, and now aims to $ 16 billion in 2026.
The company has also lowered its target of annual capital expenses, to $ 18 billion against 20 billion beforehand.
“Intel takes measures to carry out a more effective execution through the activities” of the group, he said in a press release.
If US President Donald Trump has so far exempt semiconductors from new customs rights he has implemented, the retaliatory measures decided by China on the chips made in the United States combine the horizon for Intel sales on the Chinese market – traditionally its main market.
A note published earlier this month by the Chinese association of the semiconductor industry, supported by Beijing, announces customs taxes of at least 85% on American manufacturing fleas.
In the first quarter, Intel recorded a stable turnover at $ 12.67 billion, an amount greater than the consensus which appeared at $ 12.30 billion.
The group says it expects a profit adjusted by neutral action over the April-June period, while analysts anticipated an adjusted benefit of 6 cents per share on average.
(Arsheeya Bajwa in Bangalore, Max A. Cherney and Stephen Nellis in San Francisco; Jean Terzian)
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