Intel Corp. expects revenue to rise by just under 2% this year, with growth picking up in later years as CEO Pat Gelsinger pursues a turnaround of the once-dominant chipmaker.
Sales projected to $76 billion in 2022, aiming a mid to high growth percentage by 2024, the company said at an investor event in San Francisco.
Intel has struggled to capitalize on booming demand for chips, a surge fueled by the work-from-home trend and the spread of semiconductors into a wider range of devices, Bloomberg reports.
*Bloomberg chart on Intel& main rivals Amd/Nvidia
The chip industry’s sales gained 29% last year to a record total of $556 billion, Intel posted a 4% decline.
- The company’s rivals, meanwhile have been flourishing, Advanced Micro Devices Inc.’s sales grew 68% last year, and Nvidia Corp. posted a 61% gain.
- Those companies are on course to expand sales more than 25% again in 2022, according to analysts’ projections.
The biggest Intel’s sales comes from the personal-computer market, where its processors remain the most important component of the majority of laptops and desktops.
PC shipments climbed back to levels not seen for a decade, helped by the shift to remote work.
Intel is facing fiercer competition from AMD, and some customers — like Apple Inc. — are switching to their own chips.
Gelsinger, outlined a plan to spend tens of billions on new factories that will put him in direct competition with outsourced manufacturing providers such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co.
The company is also entering new markets such as graphics chips where it will go head to head with AMD and Nvidia.
The company expects revenue growth to hit 10% to 15% by 2025 in due projections of “investment phase” is over.