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The company raised its outlook for FY21 revenue by only $1 billion to $73.5 billion, an indication that growth may be slowing after a strong year since the pandemic struck..
Intel also raised the outlook for annual earnings per share by 20 cents from the previous forecast to $4.80.
Third-quarter EPS is seen at $1.10 on revenue of $18.2 billion.
According to separate comments Chief Executive Officer Pat Gelsinger made to Reuters and The Wall Street Journal, the ongoing shortage of chips could spillover into 2023.
“We are helping them build factories as fast as they can,” Gelsinger told Reuters. “But it will be one of those things that just takes a couple years to fully catch up to this explosive demand we’re seeing, and we have better tools to address it than others.”
Intel is pumping in $20 billion to set up two chip-making factories in Arizona. Reports say it is in talks to buy GlobalFoundries for $30 billion. Intel hasn’t commented on the reports.
The Intel CEO also told The Wall Street Journal that supply shortages should begin to ease later this year.
The surge in demand for work from home solutions in the pandemic brought big business to both software and IT hardware companies but it has also proven to be too much for them. Supplies have fallen short as demand surged not just from manufacturers of laptops, mobiles and digital gadgets, but also from other sectors that are relatively new to the digitization trend.
Prices have moved up significantly, boosting profits across the sector. Intel’s adjusted EPS rose 12% from the same quarter a year ago to $1.28. Revenue rose 2% to $18.5 billion, exceeding April’s guidance by $700 million.
