American Multinational Corporation Intel shares dropped 2% after CEO Pat Gelsinger’s second earnings report at the helm of the American chip giant as investors assessed cautionary guidance on margins in the current quarter. The company’s reported revenue and earnings per share beat both the company’s forecast as well as Wall Street expectations, attributing the beat to strength in its business unit that produces chips for PCs.
American Multinational Corporation Intel said that PC unit sales were up 33% over last year. The company reported Earnings per share (EPS): $1.28. The analyst predicted earnings per share as $1.06. The company reported its revenue as $18.5 billion and the analysts predicted the revenue as $17.8 billion expected.
American multinational Corporation guided to non-GAAP gross margins of 55% in Q3, a notable drop from 59.2% in Q2. It also added a decreased margin due to supply constraints as well as costs related to building chips with new process technology. The company is also committed to spending $20 billion to improve its manufacturing capabilities, including two new facilities in Arizona. One highlight was Intel’s Client Computing Group, which includes chips for PCs, which reported $10.1 billion in revenue, up 6% year-over-year. The company is facing chip supply problems stretching as far as 2023.