Intel today announced revenue of $ 19.2 billion for the third quarter, up 5% from the previous quarter.
The company’s sales was $ 18.1 billion on a non-GAAP basis.On a non-GAAP basis, Intel earned $ 1.71 per share, compared to $ 1.08 per share in the same quarter last year.Annual earnings are now expected to be $ 5.28 per share. Revenue of $ 18.3 billion and earnings of 90 cents per share are predicted in the current quarter.
Intel is expected to earn $ 1.11 per share on revenue of around $ 18.2 billion, according to analysts polled by the firm. They projected comparable earnings and earnings of around $ 1 per share for the current quarter.Intel shares plunged 6% in late trade after increasing 1.1 percent at the close of New York trading today.
Intel is in the midst of one of its most pivotal moments in history. In addition to diminishing manufacturing profitability, it is losing market share to chip design competitors such as Anvidia, AMD, and ARM, and is facing greater competition in chip manufacturing from Taiwanese TSMC and Samsung. If that wasn’t enough, its clients have moved on to design their own chip based on the competitive ARM architecture, such as Apple in computers or Google, Amazon, Microsoft, and Alibaba in cloud servers.
Apple just released a series of Intel chipless laptops this week, signaling the company’s growing reliance on Intel, which began with the 2007 launch of the iPhone, which was based on competitor Qualcomm’s chips.
Pat Glasinger, the company’s new CEO, was chosen earlier this year to help calm the ship, which will focus on Intel’s core sectors of PC chips, servers, and communications stations. As competitor TSMC does, and that the number of Intel plants built in Western countries, including the United States and Europe, will dramatically expand. This comes in the context of China’s expanding influence in Taiwan and the possibility of a Chinese takeover of the TSMC factory.
Intel’s sales has increased and it has generated a profit in recent quarters, but its stock has lagged significantly behind competitors, some of whom, like Anvidia and AMD, have provided investors with a handsome return in recent years. In comparison, AMD shares have risen 1700 percent, Anvidia shares have risen 1200 percent, and Intel shares have only risen 57 percent in the last five years.