Intel Shares Fall After Earnings and Uncertain Future Regarding Chip Manufacturing | Financial Buzz

Intel Shares Fall After Earnings and Uncertain Future Regarding Chip Manufacturing

Intel Corporation (NASDAQ: INTC) shares crashed about 15% Friday after the computing, networking, data storage, and communication solutions provider announced earnings and discussed the possibility of no longer manufacturing chips.

Intel has announced delays in chip manufacturing, as accelerating 10nm product transition; 7nm product transition delayed versus prior expectations.

“To the extent that we need to use somebody else’s process technology and we call those contingency plans, we will be prepared to do that,” Bob Swan, Intel CEO told analysts on a conference call. “That gives us much more optionality and flexibility. So in the event there is a process slip, we can try something rather than make it all ourselves.”

As for the earnings report itself, Intel reported second-quarter revenue of $19.7 billion was up 20 percent year-over-year (YoY). Data-centric revenue grew 34 percent, accounting for 52 percent of total revenue; PC-centric revenue grew 7 percent YoY.

Intel achieved record second-quarter revenue with 34 percent data-centric revenue growth and 7 percent PC-centric revenue growth YoY. These results were driven by strong sales of cloud, notebook, memory and 5G products in an environment where digital services and computing performance are essential to how we live, work and stay connected.

“It was an excellent quarter, well above our expectations on the continued strong demand for computing performance to support cloud-delivered services, a work- and learn-at-home environment, and the build-out of 5G networks,” said Bob Swan. “In our increasingly digital world, Intel technology is essential to nearly every industry on this planet. We have an incredible opportunity to enrich lives and grow this company with a continued focus on innovation and execution.”