Intel shares fall after company blames shrinking PC chip business on component shortages
Summary
Intel shares fell more than 6% on Thursday on a weaker-than-expected sales report and after the company blamed an industry-wide component shortage for its PC chip business shrinking 2% during the quarter. Intel said that PC sales were down primarily due to lower laptop volumes because of the chip shortage, and that its customers may have lacked other parts it needed to finish assembling computers. Investors are closely watching Intels gross margin as the company spends on ramping up new production lines to catch rivals in semiconductor performance. The quest to become a foundry is an expensive initiative that could have its costs defrayed by government support in the U.S. and Europe, but could be extremely lucrative if the semiconductor industry doubles in size over the next 10 years, as Intel has predicted. Intel is likely to provide more details on how it sees the transition to becoming a foundry and its views on its technology roadmap next month at its analyst day, which the company moved to next February on Thursday.
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