Intel reports loss of nearly $17bn in third quarter

Deal with either Apple, Samsung or Qualcomm could save next quarter

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Image: Shutterstock via Dennis

Intel reported third-quarter profit that was considerably lower than expected and revenue that exceeded forecasts.

Intel reported a net loss of $16.6 billion for the third quarter, compared with a net profit of $300 million in the year-ago period.

Intel also posted 6% lower third-quarter revenue of $13.3 billion. The company itself was counting on revenue of $12.5 billion to $13.5 billion for the quarter. The market assumed $13.02 billion.

At the client computing branch, year-to-date revenues fell 7% to $7.3 billion, while its data centre & AI business was up 9% to $3.3 billion.

The company missed the boom in investment in fast, advanced AI chips for data centres. On the other hand, the PC market is picking up, and with it, demand for PC processors.

Intel expects revenue between $13.3 billion and $14.3 billion for the current quarter.

Both Apple and Samsung are said to be interested in Intel parts, and Qualcomm is also said to have already held talks.

Samsung is said to be the most advanced in negotiations. Apple already acquired Intel’s modem business in 2019 for about $1 billion, but it is unlikely that the company as a whole wants to invest in a PC processor manufacturer.

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Read More: Intel Results