Intel Earnings Expected to Slump on PC Rout

Intel is expected to report a sharp drop in quarterly earnings, hurt by a rapidly shrinking market for personal computers that its chips go into. The company after the closing bell Thursday is projected to post sales of about $15 billion during the quarter ended in September, a retreat of more than 21% from the year-earlier period, according to a FactSet survey of analysts. Net income likely fell by around 93% to $494 million, the analysts estimate. Intel and other chip makers cashed in on a boom in computer and electronics sales at the outset of the pandemic with the shift toward remote work and distance learning. The market has turned, though, with high inflation, rising interest rates and recession fears that have weighed on demand.