(Bloomberg) — Intel Corp., fresh off the abrupt departure of Chief Executive Officer Pat Gelsinger, stuck to its current financial forecast during a presentation Wednesday while also saying it would keep a tight rein on capital spending.
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“We remain committed to the guidance we provided on the earnings front,” Chief Financial Officer and interim co-CEO Dave Zinsner said Wednesday at the UBS Global Technology and AI Conference. He also said that Intel’s “core strategy” remains intact.
Still, he and Intel CEO Naga Chandrasekaran offered a vision for the company that included a more conservative approach to capital spending — something that had been a concern for investors during Gelsinger’s tenure.
“There needs to be a significant cultural change,” said Chandrasekaran, a Micron Technology Inc. veteran. which oversees Intel’s manufacturing operations and supply chain. The company previously made as many chips as needed to meet demand, an approach Chandrasekaran called “leaving no wafer behind.” Intel must now embrace the “leave no capital behind” attitude, he said.
Intel announced Gelsinger’s retirement on Monday, less than four years after he took the job. His departure came after the board gave him the choice of retiring or being fired, Bloomberg previously reported, citing people familiar with the matter. Last month, the company said current quarter revenue would be $13.3 billion to $14.3 billion, compared with an average analyst estimate at the time of $13.6 billion.
At the UBS event, executives said Intel would continue Gelsinger’s strategy of turning the company into a “world-class” foundry — a maker of chips for outside customers. Intel also isn’t concerned about the Chips Act subsidy, Zinsner said. The Santa Clara, California-based company is expected to receive about $7.9 billion in awards as part of a federal program aimed at revitalizing the domestic semiconductor industry.
“It’s a rock-solid agreement,” Zinsner said. He also noted that much of the Chips Act stimulus will come in the form of tax credits, rather than subsidies, and that the new Trump administration “values manufacturing.”
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