Intel CFO says the definitions are an opportunity to slow economic, stagnation

Intel Financial Director David Zixer said President Donald Trump The definitions and revenge against other countries increased the possibility of stagnation.

“The commercial policies of fluids in the United States and beyond, as well as organizational risks, have increased the opportunity to make an economic slowdown, with the possibility of increasing stagnation,” Zenser said in the company’s quarterly profit call.

Intel mentioned better than expected The results of the first quarterThe company said that some customers store the chips before the definitions. However, the directives of revenue and profit were lower than expectations, prompting the shares of the chip maker to a decrease in more than 5 % in the extended trading.

Intel for the current quarter is 11.2 billion dollars to 12.4 billion dollars. Zinsner said the range is “broader than usual” due to the uncertainty caused by definitions.

The company’s expectations confirm the sensitivity of manufacturers to exchange restrictions, even for companies that are committed to building products in the United States while Intel manufactures some of its local processors locally, they also participate with them Taiwan semiconductor manufacturer Samsung in Korea for the manufacture of chips, and importing the ASML chip machines in Europe. The company also needs spare parts and materials that come from China.

Zinsner said that the customs tariff environment makes it difficult for Intel to predict its performance for the quarter and the year, adding that it now expects the total market to shrink to its potatoes, especially if consumers stop buying new computers.

“The biggest risks that we see are the effect of a possible decrease in investment and spending, as companies and consumers interact with high costs and unconfirmed economic background.”

Although Intel has enough production in different places around the world to alleviate some definitions, the company “will definitely witness an increase in costs.”

One of the possibilities is that consumers may choose laptops and other computers that depend on older generation chips, which are less expensive, said Michel Johnston Holthhaus, CEO of Intel Products.

Holthhaus said in the profit call: “The total economic concerns and definitions make everyone surround their stakes in their inventory perspective.”

Beyond the customs tariff, Intel faces efforts by the US government to request licenses to charge advanced chips for artificial intelligence For countries like China.

On Thursday, the Intel profit report was the first CEO of Lip-Bu Tan, who was appointed to the job last month. Tan said he intends Reducing Intel operating and capital expenses To make the company more efficient.

He watches: Sosaihanna Roland says that Intel is dead money in its current strategic form.