Intel headquarters in Santa Clara, California, USA on Wednesday, April 23, 2025. Intel Corp. It is to issue data from earnings on April 24.
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Intel Cfo David Zinsner said President Donald Trump Tariffs and retaliation from other countries have increased the likelihood of recession.
“Very liquid commercial policies in the US and outside, as well as regulatory risk, increased the chance of economic slowdown, with the probability of recession growth,” said Zinsner regarding the company's quarterly invitation on Thursday.
Intel reported better than expected The results of the first quarterPartly because some customers wrote the fries in front of the tariffs, said the company. However, the guidelines for revenues and profits were below expectations, which reduced chipmer shares by over 5% in extended trade.
Intel's forecast for the current quarter is from USD 11.2 billion to USD 12.4 billion. Zinsner said that the range is “wider than usual” due to uncertainty caused by tariffs.
The company's prospects emphasize how sensitive manufacturers are to trade restrictions, even for companies that are involved in building products in the USA Taiwan Semiconductor Manufacturing Company and Samsung in Korea for the production of tokens and importing machines for creating chips from ASML in Europe. The company also needs parts and materials from China.
Zinsner said that the tariff environment hinders Intel to predict its results for a quarter and year, and added that now it predicts that the total market of its systems can decrease, especially if consumers stop buying new computers.
“The greatest risk we see is the impact of potential withdrawal of investments and expenses, because companies and consumers react to higher costs and uncertain economic background,” said Zinsner.
Although Intel has sufficient production in various places around the world to alleviate some tariffs, the company “will certainly increase costs”, he added.
One of the possibilities is that consumers can choose laptops and other computers based on older generation systems that are cheaper, said Michelle Johnston Holthaus, and CEO Intel Products.
“Macroeconomic fears and tariffs make everyone protect their plants with what they must have from the perspective of equipment,” said Holthaus about calling for earnings.
In addition to tariffs, Intel is in the face of the US government's efforts to require a license to send advanced systems to artificial intelligence to countries like China.
The Intel earning report on Thursday was the first CEO of Lip-Bu Tan, which was appointed to work last month. Tan said he was planning reduce Intel operating and investment costs So that the company is more efficient.
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