SAN FRANCISCO – Intel Corp. expects its profit margin to drop this year and then be steady for several years as it invests in new technologies and factories to meet rising chip demand, but added it forecasts climbs from 2025. Intel Chief Executive Pat Gelsinger also said Intel would be interested in participating if a consortium emerges to own the British semiconductor and software design company Arm Ltd. Gross margins are set to drop to 52% this year from nearly 58% last year on a non-GAAP basis, Intel said at its Investor Day conference Thursday. It sees levels of 51% to 53% in 2023 and 2024 before a climb back to 54% to 58% the following years. Intel predicted a revenue increase of 1.7% to $76 billion in 2022, then mid-to-high single digit percentage point growth in 2023 and 2024, followed by gains of 10% to 12% for 2025 and 2026.
Inflationary pressures, component concerns, and a drop in demand dragged down Intel's PC chip business by 13 percent versus a year ago, a black mark against what was an otherwise strong first quarter of 2022 results. That group, the Client Computing Group (CCG), reported revenue that fell 13 percent to $9.3 billion. Overall, Intel reported net income of $8.1 billion, which grew a whopping 141 percent versus a year ago. Revenue dipped by 7 percent to $18.4 billion, however. The dip in CCG revenues, Intel's largest business segment, hurt its overall business.
The technology gives Micron recommendations for different asset classes and financial institutions that promise the highest yield. It takes into consideration the company's limits for the amounts of money it can deposit with a particular institution or invest in a certain type of asset. Micron, which makes memory chips and storage devices for things ranging from cars to data centers, has relationships with more than 20 banks globally. The Morning Ledger provides daily news and insights on corporate finance from the CFO Journal team. With near-zero interest rates in the U.S. and elsewhere, companies are struggling to find returns for the cash piles that they accumulated in response to the economic shock caused by the coronavirus pandemic.
Intel's Gregory Bryant appears as a live hologram at Computex 2016 Intel has announced a new head for its client computing group with current chief Gregory Bryant departing at the end of month after three decades at the company. Replacing Bryant is Michelle Johnston Holthaus, who is currently the general manager of Intel sales, marketing, and communications, and was previously sales chief of the client computing group. Holthaus will "transition" into the role over coming months as the company looks to fill the sales role. "Michelle's track record of success driving global sales and revenue for the last five years, combined with her profound understanding of the client computing business and trusted relationships across the entire industry, make her a natural choice to lead our largest business," Intel CEO Pat Gelsinger said. "I want to thank GB for his outstanding leadership and 30 years of service at Intel, which has seen five consecutive years of business growth and, most recently, the successful launch of the 12th Gen Intel Core family. We wish him all the best in his next endeavour."