Intel's current-quarter sales outlook misses estimate

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Intel's current-quarter sales outlook misses estimate

Chipmaker Intel forecast second-quarter revenue below Wall Street expectations on Thursday on worries of demand weakness from its largest end market, PCs, and increased supply-chain uncertainty due to COVID-19 lockdowns in China.

Shares of the company fell 5 percent in after-market trading.

The company expects current-quarter revenue of about US$18 billion compared with analysts' average estimate of US$18.38 billion, according to IBES data from Refinitiv.

Rising inflation, resurgence of COVID-19 in China and uncertainties around the war in Ukraine have shifted consumer spending away from gadgets, hurting Intel, which saw more than half of its revenue last year coming from the segment selling processors for PCs.

Analysts say the PC market is coming off from searing rates of growth over the last two years as remote working and learning triggered high demand during the pandemic.

As lockdowns in China continue, supply-chain bottlenecks are likely to hurt Intel's customers, in turn affecting the chipmaker's business.

Adjusted revenue for the first quarter was US$18.4 billion, compared with analysts' average estimate of US$18.31 billion.

(Reporting by Chavi Mehta and Eva Mathews in Bengaluru and Jane Lanhee Lee in Oakland, Calif.; Editing by Krishna Chandra Eluri)

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