Intel lost half a billion dollars last quarter, confirms price increases, and shuts Optane down

Intel lost half a billion dollars last quarter, confirms price increases, and shuts Optane down ...

Intel's second-quarter earnings report for 2022 was released on Thursday. The company's revenue decreased by 22% year-over-year to $15.3 billion, ending the quarter with a $454 million net loss, a 109 percent decrease from the $5 billion profit forecasted in Q2 2021.

Intel forecasts the PC market to shrink by ten percent this year.

Intel CFO David Zinsner said the company has been suffering from inflationary cost increases that must be passed on to customers at some point.

Intel's Client Computing Group, which includes consumer CPUs, reduced in revenue by 25 percent YoY, but still generated a profit of $1.1 billion. According to Intel CEO Pat Gelsinger, some of their largest customers are reducing inventory levels at a rate unprecedented in the last decade.

The Accelerated Computing Systems and Graphics Group reported a $507 million loss this quarter. Gelsinger said the company would not fulfill its internal goal of selling four million Arc GPUs this year. He also discussed difficulties the company's had in developing the graphics drivers.

The chipmaker also announced that it's shutting down its Optane memory business and halting the development of its 3D Xpoint technology, and that it will pay $559 million in inventory impairment compensation this quarter. The chipmaker sold its SSD business to SK Hynix in 2020, but initially decided to keep Optane.

Intel has confirmed that it had sold off its drone business, which consisted of around 9,000 drones that performed light shows during Olympic games and Super Bowl halftime performances. According to a report from The Register, Elon Musk's brother Kimbal purchased the division.

Intel will likely benefit from the newly passed CHIPS Act, which provides $52 billion in subsidies for the construction of new factories later this year.

You may also like: