Intel released its financial report before the US stock market closed and delivered an optimistic prediction for the current quarter’s business. Intel believes that a large number of people will still work or study at home due to the epidemic. Therefore, the market demand for PCs is still growing.
Intel’s stock price increased after the release of the fourth-quarter earnings report. In the subsequently extended transaction, the stock price fell again slightly.
Intel predicts that in the first quarter of this year, the company’s revenue will reach about $17.5 billion, which does not include the memory chip division that Intel is currently selling. Analysts’ average forecast for Intel’s first-quarter revenue is $16.2 billion.
Intel’s chief financial officer George Davis said in an interview that the company believes that consumer demand for laptop products in the first half of this year will remain strong. He added that Intel’s profitability in the second half of this year will depend in part on whether companies increase their spending on adding new hardware.
In the earnings report, Intel did not announce new details of its production plan. At the close of the New York Stock Exchange, Intel shares rose 6.5% to close at $62.46. In 2020, the company’s share price fell 17%, but after the new CEO Pat Gelsinger took office, its share price ushered in an increase.
Although the current strong PC demand has brought benefits to Intel. In the past 30 years, Intel has been the world’s largest chip manufacturer. They have the most advanced factories, produce the best chips, and dominate this $400 billion industry.
In recent years, many other US chip companies have closed or sold their factories and outsourced production to other companies. However, Intel continued, they believed that their own production could improve their business conditions and produce better chips.
However, in recent years, this strategy has begun to collapse, and the company currently lags behind TSMC and Samsung Electronics. Earlier it was reported that Intel had negotiated with the two Asian companies to produce some of its leading products.