Intel fumbled new manufacturing technology in recent years, causing it to fall behind rivals such as Advanced Micro Devices Inc and Nvidia Corp in the race to make faster, smaller chips
By Stephen Nellis and Chavi Mehta
(Reuters) - Intel Corp on Thursday raised its annual sales outlook on the booming demand for personal computers, but its second-quarter profit forecast fell short of analyst expectations as the company spends heavily to get its manufacturing operations back on track and catch up to rivals with faster chips.
Intel shares were down 3.1% to $60.60 in after-hours trading after the results. The company also missed first-quarter expectations in its closely watched data center chip unit.
Intel fumbled new manufacturing technology in recent years, causing it to fall behind rivals such as Advanced Micro Devices Inc and Nvidia Corp in the race to make faster, smaller chips. Patrick Gelsinger, who returned to Intel as its chief executive earlier this year, said the chipmaker has begun to resolve its manufacturing problems, and in March announced a major expansion plan to build new factories in the United States and Europe.
Intel, which is one of the few remaining companies in the processor chip industry that both designs and manufactures its own chips, has said it has been able to beat out rivals during a global chip shortage by operating its own factories. But the company said shortfalls of other third-party components needed to build complete computers could hold back its sales this year.
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