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Intel (INTC) Q4 2021 earnings


U.S. President Joe Biden embraces Intel CEO Patrick Gelsinger during an event on ongoing supply chain issues in the South Court Auditorium of the Eisenhower Executive Office Building on Jan. 2022 in Washington, DC. Gelsinger announced that Intel Corp. will make an initial $20 billion investment to develop a new semiconductor manufacturing plant in Ohio.

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Intel reported fiscal fourth-quarter earnings, for the period ended December 26, after the bell on Wednesday. Shares fell about 3.5% in after-hours trading despite a beat.

Here’s how Intel did against the Refinitiv consensus estimate:

  • EPS: $1.09, adjusted, vs. $0.91 expected
  • Turnover: $19.5 billion, adjusted, versus $18.31 billion expected

Intel said it expects $18.3 in adjusted revenue in the first quarter of 2022, beating consensus analyst expectations of $17.62 billion.

According to FactSet, Intel’s largest business, the Consumer Computer Corporation, fell 7% year-on-year to $10.1 billion, though it still beat the average analyst estimate. total is 9.6 billion USD. The Data Center Group unit also topped expectations, with revenue up 20% to $7.3 billion, compared with the median estimate of $6.7 billion.

Pat Gelsinger assumed the position of Intel CEO just under a year ago and the start of a major capital expenditure period. Under Gelsinger, Intel has announced it will continue to make its own PC and server chips, and, in a change of strategy, will also start producing designs from other companies.

This strategy requires new facilities and investments.

Intel announced Last week, it planned to build a chip manufacturing complex in Ohio that could house up to eight chip factories, or chip factories, slated to begin production in 2025. Intel said it will invest at least $20 billion to put the first two factories into operation. and run.

The ultimate dimension of the Ohio complex linked to the law will lead to 52 billion dollars in funding subsidies for semiconductor companies. Intel could spend up to $100 billion if the subsidies go through. Gelsinger appeared at an event with President Biden last week to encourage Congress to pass legislation allowing full funding of the bill.

The Ohio investment follows the announced plans last year spent $20 billion to expand an existing facility in Arizona.

In February, Intel will launch broader overview of its technology strategy and roadmap for investors, who are keeping a close eye on Intel’s operating margins as Intel invests in additional manufacturing capacity.



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