Intel's revenue fell 36 percent to $11.7 billion in the
three-month period and the semiconductor giant posted a loss of $2.8 billion,
its biggest ever for a quarter.
Rising prices, a global chip glut and poor demand for
hardware also punished Intel's rival Samsung, which earlier on Thursday reported
its worst quarterly profits in 14 years.
The loss and sales collapse was slightly less catastrophic
than expectations, but the stock still lost about two percent in post-session
trading.
Intel is one of the world's leading semiconductor makers
that makes a wide range of products, including the latest generation chips
along with Taiwan's TSMC and South Korea's Samsung.
It was also affected by falling demand for chips that power
data centers and is struggling to compete with Nvidia for the semiconductors
that undergird ChatGPT-style generative AI, a major new and chips-hungry sector
for the industry.
The chips industry, which also powers technology such as
smartphones and cars, is well-known for its volatility, with demand and supply
see-sawing with the dips and rises in the world economy.
Its central role in the global supply chain became clear
during the height of the Covid pandemic.
Lockdowns and health restrictions diminished production out of
Asia, leaving surging demand for chips unmet just as everyone turned online for
work, shopping and entertainment.
Semiconductors have also become a political pawn between the
US and China, with Washington urging allies to stop supplying China with cutting
edge chips, further destabilizing the sector.
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