Intel Sees More Demand From COVID-19; Stock Down Amid Forecast

Q3 revenue in Intel’s “PC-centric” business increased 1% to $9.8 billion on strong notebook CPU demand for remote work and learning, said Chief Financial Officer George Davis on a Thursday investor call. Intel’s July 23 forecast was for Q3 PC-centric revenue to decline by mid-single digits. For Q4, “we see many of the same dynamics” that were in place in Q3, said Davis. “We see continued strength in consumer notebook PCs supported by work and learn-from-home dynamics and from increased supply.” Intel “significantly improved supply” of CPUs in Q3, said CEO Bob Swan. Revenue for the year is expected to exceed its January forecast by $1.8 billion, “even as COVID has significantly impacted our business mix,” he said. Full-year gross margin will be down about 2 points vs. the forecast, on shifts away from enterprise PC products “in a work-from-home, study-from-home environment,” he said. Q3 “turned out to be a very different quarter than we thought going in, a much heavier mix of the entry-level PC markets -- both consumer and education,” said Davis. Average selling prices declined “even as we saw strong unit demand,” he said. The stock closed 10.6% lower Friday at $48.20.