Intel on Wednesday also won an annulment of a $1.2 billion fine issued by European regulators in 2009..
Photo: Maria Alejandra Cardona for The Wall Street Journal
Intel Corp.’s INTC 1.35% net income fell last quarter at a time of booming chip sales, highlighting how Chief Executive Pat Gelsinger’s efforts to revive the semiconductor giant’s fortunes are a multiyear affair.
The chip company posted $20.5 billion in fourth-quarter sales, up 3% from the year-ago period, in part reflecting the sale of its memory business. The company generated net income of $4.6 billion, down 21% year-over-year as Intel ramped up investments in new plants and products. Wall Street expected sales of $19.2 billion and net income of $3.2 billion.
The U.S. semiconductor giant is in a period of transition after falling behind rivals in chip making, and competitors have taken market share from it in some semiconductor categories. Mr. Gelsinger, who took over as CEO in February 2021, has been trying to reverse the decline and said in December that his turnaround plans could take five-plus years.
Intel shares fell more than 3% in after-hours trading. The stock closed Wednesday’s regular trading session around 1% higher at $51.69, after it won a reprieve from a $1.2 billion fine by the European Union’s antitrust regulator issued more than a decade ago.
Write to Meghan Bobrowsky at [email protected]
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