Intel’s financial director says tariffs create chances for economic slowing, recession

Intel said Financial Director David Zinner President Donald Trump Tariffs and revenge from other countries increased the likelihood of recession.

“Fluid policy itself in the United States and abroad, as well as regulatory risk increased the likelihood of economic slowing, with the probability of growing recession,” Zinnsner said on a quarterly call on Thursday.

Intel reported more than expected The results of the first quarterPartly because some customers stocks the chips ahead of the tariffs, the company notes. However, revenue and profit recommendations were below expectations, pushing the stock of chips by more than 5% for advanced trade.

Intel’s forecast for the current quarter is $ 11.2 billion to $ 12.4 billion. Zinner said the range is “wider than usual” of the uncertainty caused by tariffs.

The company’s forecast emphasizes how sensitive manufacturers should trade restrictions Taiwanese semiconductor production company and Samsung in Korea for making chips and imports of machines to make chips from ASML in Europe. Companies also need details and materials that come from China.

Zinner said the tariff environment complicates Intel to predict its performance for the quarter and year, and added that it expects that the common market for its chips could be reduced, especially if consumers stop buying new computers.

“The greatest risk we see is the impact of a potential refusal of investments and costs, as businesses and consumers respond to higher costs and uncertain economic background,” Zinnsner said.

Although Intel has enough production in disparate places around the world to soften some tariffs, a company, “will definitely see an increase in costs,” he added.

One of the opportunities is that consumers can choose laptops and other computers based on the older generation chips that are less expensive, said Michel Johnston Holtwow, CEO Intel Products.

“Macroeconomic problems and tariffs force everyone who strives for their rates that they need to have inventory,” Holtav said on a call.

In addition to tariffs, Intel faces For countries such as China.

Intel’s income report on Thursday was the first under the CEO of Lip-Bu Tan, which was scheduled for work last month. Tan said that plans reduce operating and capital costs Intel To make the company more efficient.

See: Intel – it’s dead money in its current strategic form, says Suskhan Roland