Intel, the semiconductor giant headquartered in Santa Clara, California, reported its largest-ever quarterly loss on April 27 due to a sharp decline in personal computer sales and rising competition. This is the fifth quarter in a row that Intel has reported falling sales and the second consecutive quarter of losses. The results showed a staggering 133% annual decline in earnings per share, with revenue dipping nearly 36% to $11.7 billion. The net loss was $2.8 billion, compared to a profit of $8.1 billion last year.
There are three main reasons for the current struggles faced by chipmakers: rising prices, a global chip glut, and poor demand for hardware. These factors have also affected Intel’s rival Samsung, which recently reported its worst quarterly profits in 14 years.
Intel is one of the world’s leading semiconductor makers, along with Taiwan’s TSMC and South Korea’s Samsung, producing a wide range of products, including the latest generation chips.
However, Intel is struggling to compete with Nvidia for the semiconductors that undergird ChatGPT-style generative AI, a major new and chips-hungry sector for the industry. Additionally, falling demand for chips that power data centers has also impacted the company.
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