Intel Shares Plummet Over 10% After Disappointing Revenue Forecasts

SadaNews Economy - Struggling American chipmaker Intel is facing a slowdown in its restructuring efforts due to supply chain bottlenecks.

Its revenue forecasts, which ranged between $11.7 billion and $12.7 billion for the current quarter, disappointed Wall Street on Thursday, leading to a drop in the company's shares by more than 10% at times during after-hours trading in the United States.

Chief Financial Officer David Zinsner stated in a conference call with analysts that increasing the production capacity for the new generation of Intel chips will take time.

Given this situation, Intel intends to prioritize meeting strong demand for data center technology in the coming months, as the company had underestimated demand in this area during its planning process.

Analyst Jay Goldberg from Seaport Research told CNBC that the shortage of memory chips, in particular, is preventing the construction of more personal computers powered by Intel processors.

The supply chain bottlenecks are attributed to the demand for memory used in AI data centers, which is putting significant pressure on production capabilities.

In the last quarter, Intel still exceeded analysts' expectations despite declining sales and operating losses; revenue dropped by 4% year-over-year to $13.7 billion. The bottom line was a loss of $591 million, compared to a loss of $126 million in the same quarter of the previous year.