With rising inflation and businesses shut down, many people invested in company stock markets have been disappointed. Despite the omnipresence of technology, however, even these companies are suffering major losses and the Intel company is no exception. A few weeks ago, Intel CEO Patrick Gelsinger reported a loss of revenue throughout their second quarter-their first loss in years.
Between the demand for new PC features and the struggling economic crisis, Intel’s deficits had reached over $500 million. Statistics show the company’s revenue has fallen by 22% causing the company to decrease its annual revenue expectations by over $3 billion.
According to Chief Finnancial Officer David Zisner, the COVID pandemic continues to play a role in this downturn as “the struggle of inspiring customers, especially elders, to purchase online has caused decline consumer demand”. However, Zisner also summarizes other culprits such as rising inflation and the reverberating effect on the war on Ukraine, one of Intel’s donors.
“This quarter’s results were below the standards we have set for the company and our shareholders,” says Gelsinger . “We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues. We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation.”
Intel further reports how beneficial President Biden’s CHIPS and Science Act as well as the American Rescue Plan will prove towards the company. Both of these bills plan to create more semicinductors in the United States while improving the manufacturing rate throughout the country. With this, Gelsinger continues to be hopeful towards a successful future, hoping for a V-curve.
“As we look beyond the near term, the semiconductor industry continues to be at the beginning of a new structural growth phase driven by four superpowers: ubiquitous compute, pervasive connectivity, cloud-to-edge infrastructure and AI,” says Gelsinger . “What remains very clear, even during this period of uncertainty, is the growing importance of silicon to the global economy and to each of our daily lives.”