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July 8th - According to CNN, citing three sources familiar with the decision-making process, prior to the February 28th attacks on Iranian targets, senior U.S. military commanders ignored warnings in key databases that intelligence regarding potential Iranian targets was severely outdated and approved multiple strikes, including an attack on an Iranian girls school that killed nearly 200 children and adults. The sources stated that the system contained warnings indicating that the intelligence was based on data from years ago and needed to be reviewed, and that adding targets to the strike list required approval from senior officers. Two of the sources indicated that senior commanders ignored the warnings for "efficiency reasons," as identifying targets was urgently needed in the early stages of a war, but this directly led to the mistaken bombing of the school. This attack is one of the deadliest civilian casualties in recent U.S. military operations.July 8th - According to Iranian state television today (July 8th), the US attack on Sirik in southern Iran has resulted in multiple injuries. Iranian President Pezechzian, who had just arrived in the Iraqi Shiite holy city of Najaf a few hours earlier, has left Iraq and returned home ahead of schedule. Pezechzian was scheduled to attend the funeral service for the late Iranian Supreme Leader Ali Khamenei in Iraq today.Bahrains Foreign Ministry condemned Irans attacks on Saudi and Qatari oil tankers, calling the incidents a "serious violation of international law" and a threat to maritime security and global energy supplies.1. All three major U.S. stock indexes closed lower. The Dow Jones Industrial Average fell 0.25% to 52,925.15 points, the S&P 500 fell 0.45% to 7,503.85 points, and the Nasdaq Composite fell 1.16% to 25,818.69 points. Caterpillar fell more than 3%, Honeywell International fell more than 2%, leading the decline in chip stocks, with the Philadelphia Semiconductor Index falling 4.65% and Intel falling more than 9%. The Wind U.S. Tech Big Seven Index fell 0.01%, Tesla fell more than 4%, Facebook rose more than 2%, and SpaceX fell nearly 7%. 2. The three major European stock indexes closed mixed. The German DAX fell 1.37% to 25,465.25 points; the French CAC40 fell 0.51% to 8,436.24 points; and the UK FTSE 100 rose 0.13% to 10,665.88 points. 3. The WTI crude oil futures contract rose 5.32% to $72.2 per barrel; the Brent crude oil futures contract rose 5.49% to $75.94 per barrel. 4. International precious metals futures generally closed lower. COMEX gold futures fell 1.22% to $4116.60 per ounce, and COMEX silver futures fell 3.09% to $60.41 per ounce. 5. Most London base metals fell. LME aluminum rose 0.75% to $3139.0 per tonne, LME lead rose 0.40% to $1887.5 per tonne, LME tin fell 0.12% to $53000.0 per tonne, LME copper fell 0.51% to $13334.5 per tonne, LME zinc fell 0.56% to $3571.0 per tonne, and LME nickel fell 0.90% to $16275.0 per tonne.According to Iranian state television, Iranian President Peshizian has left Iraq and returned to Iran after the United States launched airstrikes on southern Iran.

Intel Reduces Its Full-year Outlook, And Its Stock Price Recovers

Haiden Holmes

Oct 28, 2022 15:05

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Chipmaker Intel Corp (NASDAQ:INTC) on Thursday decreased its full-year profit and revenue expectations and warned of layoffs, while a stronger-than-expected performance in its personal computers sector contributed to a rise in the stock price.


During after-hours trading, Intel's stock price increased by over 5 percent. They have plummeted over 47% so far this year, underperforming the S&P 500 index and the Philadelphia SE Semiconductor index by a wide margin.


Pat Gelsinger, the company's chief executive officer, stated that the reduced expectation for the fourth quarter reflected economic uncertainty that is expected to continue into the following year, and that the company was taking time to ramp up sales into data centers, which fell 27% in the third quarter.


Additionally, Intel lowered its planned capital expenditures for the current fiscal year from $27 billion to $25 billion.


When asked about prospective layoffs, Gelsinger told Reuters that a plan to decrease expenses will involve "people measures." In 2023, Intel plans to lower expenses by $3 billion.


"The proportion of our overall cost structure that corresponds to people-related expenses is small," Gelsinger told Reuters, adding that adjustments to flexible workforces can be made "very fast."


He claimed that the changes would be implemented in the fourth quarter but did not specify the number of workers affected.


End of 2020, Intel had 110,600 people, just before Gelsinger assumed control. This has increased to 131,500 as of the beginning of October this year.

SILVER LINING

Significant for Intel, the future of the PC and data center businesses has been clouded by macroeconomic challenges.


An analyst at Summit Insights Group, Kinngai Chan, observed that Intel's "PC Client category was the silver lining as sequential sales climbed, giving investors hope that share erosion has calmed significantly."


The revenue of Intel's client computing sector, which is responsible for PC sales, climbed from $7.7 billion to $8.1 billion in the third quarter.


Chan remarked, "Next year, we anticipate its data center market share loss to moderate."


Amazon (NASDAQ:AMZN) reported Thursday profits that fell short of analyst expectations. AWS, the cloud division of the firm, reported a 28% increase in revenue to $20.5 billion. AWS and other cloud service providers are essential for the revenue growth of semiconductor makers, such as Intel.


In the third quarter, Gelsinger announced that Intel lost market share in the data center industry for the third consecutive quarter.


"Our goods were not shipping new stuff like Sapphire Rapids, but now that they are in full production and we're aggressively ramping them, we're better positioned going forward than ever before," he told Reuters, adding that the ramp-up would take many quarters.


He added, however, that Intel's market share in the PC segment climbed "substantially" during the third quarter.


Inflationary pressures have impeded the market for computers and other electronic gadgets, prompting electronics manufacturers to cancel orders for components such as chips as they strive to liquidate their stockpiles.


According to estimates from Counterpoint Research, third-quarter PC shipments declined by 15.5%. Intel anticipated a mid- to high-teens decline in the PC market in 2022.


Gelsinger predicted, though, that Intel's total addressable market - the market it seeks - would reach 270-295 million devices in 2023.


The company now expects yearly revenue to range between $63 billion and $64 billion in 2022, as opposed to the earlier estimate of $65 billion to $68 billion. Its initial estimate was approximately $76 billion. According to data from Refinitiv, analysts predicted yearly revenue of $65,26 billion on average.


Intel reduced their adjusted earnings per share forecast for the entire year from $2.20 to $1.95.