Intel headquarters in Santa Clara, California, USA, on Wednesday, April 23, 2025. Intel Corp. is scheduled to publish profit figures on April 24.
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Intel Financial director David Zincer said that the tariffs and reprisals of President Donald Trump of other countries have increased the probability of a recession.
“Very fluid commercial policies in the USA and beyond, as well as regulatory risks, have increased the possibilities of an economic deceleration, with the probability that a recession grows,” Zincter said about the company’s quarterly gain call on Thursday.
Intel reported first -quarter results better than expected, partly because some clients stored chips before the rates, the company said. However, the orientation for income and profits was below expectations, which promotes the actions of the chip manufacturer more than 5% in the extended trade.
Intel’s forecast for current quarter is $ 11.2 billion to $ 12.4 billion. Zincner said the range is “broader than normal” due to uncertainty caused by tariffs.
The company’s perspective emphasizes how sensitive manufacturers are commercial restrictions, even for companies that are committed to the construction of products in the USA. While Intel manufactures some of their advanced processors nationwide, it is also associated with Taiwan semiconductor manufacturing company And Samsung in Korea to make chips and import asml chips manufacturing machinery in Europe. The company also needs pieces and materials that come from China.
Zincner said that the tariff environment makes it more difficult to intend to predict its performance for the quarter and the year, and added that it now anticipates that the total market of its chips could be reduced, especially if consumers stop buying new computers.
“The greatest risk we see is the impact of a possible setback on investment and spending, since companies and consumers react to high costs and uncertain economic context,” Zichner said.
Intel Althehes has enough production in disparate places around the world to mitigate some of the rates, the company “will certainly see costs,” he added.
One possibility is that consumers can opt for laptops and other computers based on older generation chips, which are less exensas, said Michelle Johnston Holthaus, CEO of Intel Products.
“Conerns and macroeconomic tariffs have all children or covering their bets in what they need to have from an inventory perspective,” Holthaus said about the gain call.
Beyond the rates, Intel faces efforts from the United States government to demand licenses to send advanced chips for artificial intelligence to countries like China.
Intel’s profit report on Thursday was the first CEO Lip-Bu Tan, who was appointed for work for the last time. So he said he planned to reduce Intel’s operational and capital expenses so that the company is more efficient.
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