New Intel CEO turns off tape support
Intel Corp.'s new CEO Bob Swan pulled off the tape support to reveal some of the chip giant's problems Thursday, and now investors have to hope he can solve them and get better.
Intel
INTC, -1.89%
reported revenue and income from the first quarter of last year that exceeded some estimates, even in the midst of a sharp decline in its key data center. But that business and more memory-chip fall in prices led Swan – in its first earnings report since being named the regular CEO ̵[ads1]1; to reduce Intel's revenue guidance for the rest of the year by $ 2.5 billion.
"The decline in memory pricing has intensified, the data center's inventory and capacity digestion that we described in January is more pronounced than we had expected, and China's headwinds have increased, leading to a more cautious IT spending environment," Swan said. on the company's conversation with analysts, followed by a statement that demand will improve in the second half, based on customer conversations.
Don't miss: The promise of a magic rebound for tech comes with little evidence to back it up
Intel's shares stumbled around 7% after-sales, so far this year the shares are about 25%, while the S&P 500 index
SPX, -0.04%
is about 17% years to date. Its sharply lower guidance comes to the minds of Intel's major announcement last week that it would exit the 5G fashion business, where the largest customer for its communications chip was Apple Inc.
AAPL, -0.91%
. The Swan told the Wall Street Journal that Intel's decision was a direct result of Apple's surprise settlement with Qualcomm Inc.
