Intel: New quarterly figures lead to price slide, chip shortage until 2023
Intel published its quarterly figures for the third quarter of 2021 on Thursday. Compared to the same quarter of the previous year, there is a slight increase in sales and significantly more profit. Nevertheless, the company's price plummeted on the stock exchange. In addition, Intel's CEO Pat Gelsinger predicted that the chip shortage should drag on until 2023.
Photo Credits: Intel/Promo
Intel was unable to satisfy shareholders with the current quarterly figures for the third quarter of 2021. The annual report was published on Thursday, whereupon the price fell from 47.73 to 43.46 euros, according to Google - a minus of almost nine percent. Sales and profits increased, but the outlook is not exactly rosy.Growth for small divisions, lack of components slows down CCG
Compared to the same quarter of the previous year, Intel was able to increase sales by 5 percent to 19.2 billion US dollars, while it was even a 60 percent increase in profit of 6.8 instead of 4.3 billion US dollars. However, this was apparently favored by one-off effects, apart from these it should have been only 4.5 billion US dollars and thus an increase of just under 5 percent.
With regard to the individual divisions, the small Internet of Things division, in particular, grew tremendously: IOT devices saw a 54 percent increase in sales, while the associated driver-assistance division Mobileye saw an increase of 39 percent. The FPGA division also generated 16 percent more, and there was also 10 percent growth in the data center.
On the other hand, things looked bad for the storage department and Intel's largest department, the Client Computing Group (CCG). Here sales fell by four and two percent compared to the previous year. The slump in the client computing group is said to have been caused in particular by falling notebook sales: Here, Intel was allegedly slowed down by the global lack of components.
An imminent improvement of the situation is obviously not to be expected: Intel's outlook for the fourth quarter is rather cautious with sales of 19.2 billion US dollars, compared to the almost 20 billion of the previous year that would be a deterioration of four percent. In addition, the global chip shortage is apparently going to drag on much longer than previously thought: Intel's CEO Pat Gelsinger spoke to CNBC about the fact that semiconductors should be scarce by 2023.
"It will get better quarter by quarter next year, but a balance between supply and demand will not be reached until 2023."
By: Olivia J. - Zexron