(Reuters) -Intel on Thursday forecast revenue for the first quarter that could miss market estimates by more than $2 billion, as it grapples with uncertain demand for its chips used in the traditional server and personal computer markets. Intel forecast first-quarter profit of 13 cents a share, excluding one-time items. In an interview, Chief Executive Officer Pat Gelsinger said that the company's core businesses of PCs and servers were hitting seasonal low demand at the same time as noncore businesses such as auto chip firm Mobileye.
TI's projection fans concerns the automotive chip industry may also face a downturn after managing to remain on the sidelines of the supply glut crisis faced by other markets. Peer Mobileye also forecast preliminary 2024 revenue below estimates, with a pullback in orders from its customers clearing excess inventory. Summit Insights analyst Kinngai Chan pinned supply chain corrections in the automotive segment to weaker demand for electric vehicles and the United Auto Workers strikes at major automakers.