Chipmaker Intel posted record fourth-quarter revenue, but forecast first-quarter earnings short of Wall Street expectations, as the world's largest chipmaker faces challenges linked to persistent global supply chain problems.
Intel shares, which initially fell about 3% in late trade, recovered some ground after the company expressed confidence in demand for its chips and the ability to manage supply chain constraints.
The company forecast first-quarter earnings per share of 80 cents, compared to an expectation of 86 cents, according to IBES data from Refinitiv.
Intel Chief Executive Officer Patrick Gelsinger said on a conference call that he expected constraints would persist this year and into next year as the "unprecedented demand" for chips continued.
The outlook overshadowed fourth-quarter results, which Tony Balow, Intel's vice president of investor relations, said was a record and surpassed expectations. Adjusted revenue in the quarter was $19.5 billion, above an expectation of $18.3 billion and adjusted earnings per share was $1.09, ahead of 91 cents per share expected by analysts.
"We continue to see robust demand across all of our businesses. And then we see superb execution by our factory network, allowing us to go meet that demand in this challenging environment," Balow told Reuters after the earnings were released.
The company expects first-quarter revenue of $18.3 billion, above analysts' average estimates of $17.62 billion, according to IBES data from Refinitiv.
The forecast places bets on its in-house chipmaking capacity to meet strong demand from PC, data center and artificial intelligence markets even through a global semiconductor supply crunch.
Intel, one of the few semiconductor firms that designs and makes its own chips, has been in a better position to weather the supply chain challenges.
Last week, Intel announced it was investing $20 billion for two chip factories in Ohio that could eventually become the world's largest chip making complex with up to eight factories.