Intel CFO Says Tariffs Raise Chance for Economic Slowdown, Recession

Intel CFO David Zinsner Said President Donald Trump’s Tariffs and Retaliation from Other Countries has increased the Likelihood of A Rebesion.

“The Very Fluid Trade Policies in The Us and Beyond, AS Well as Regulatory Risks, Have Increased The Chance Of A Recess Groping,” Zinsner Said On The Company’s Quarterly Earnings Call on Thursday.

Intel Reported Better-Than-Expected First-quarter resultsPartially Because Some Customers Stockpiled Chips Ahead of Tariffs, The Company Said. However, Guidance for Revenue and Profit Was Below Expectations, Pushing The ChipMaker’s Stock Down More Than 5% in Extended Trading.

Intel’s Forecast for The Current Quarter is $ 11.2 Billion to $ 12.4 Billion. Zinsner Said The Range is “Wider Than Normal” Due to Uncertainty Caused by Tariffs.

The Company’s Outlook underscores How Sensitive Manufacturers Are To Trade Restrictions, Even for Companies That Are Commited To Handing Products In The US While Intel Manufactures Some Of Advanced Processors Domestically, IT ALSO Partners With Taiwan Semiconductor Manufacturing Company and Samsung in Korea to Manufacture Chips, and Imports ChipMaking Machinery From Asml in Europe. The Company Also Needs Parts and Materials That Come From China.

Zinsner Said The Tariff Environment Makes ItE Harden For Intel To Predict Its Performance For The Quarter And The Year, And Added That It’s Now Anticipating That The Total Market For Its Chips Could Shrink, Especially If Consumers Stop Buying New Computers.

“The Biggest Risk We See Is The Impact Of A Potential Pullback In Investment and Spending, As Businesses and Consumers React to Higher Costs and The Uncerta Economic Backdrop,” Zinsner Said.

Although Intel Has Enough Production in Disparate Places Around the World to Mitigate Some of the company, The Company “Will Certainly See Costs Inrease,” He Added.

One Possibility Is That Consumers May Opt for Laptops and Other Computers Based Around Older-Generation Chips, WHOGE Less Expensive, Said Michelle Johnston Holthaus, CEO of Intel Products.

“The Macroeconomic Concerns And Tariffs Have Everybody Kind of Hedging Their Bets in What They Need To Have Home An inventory Perspective,” Holthaus Said On The Earnings Call.

Beyond Tariffs, Intel Faces Efforts by The Us Government to Require Licenses to Ship Advanced Chips for Artificial Intelligence to Countries Like China.

Intel’s Earnings Report On Thursday Was ITS First Under CEO Lip-This Tan, Who Was Appointed to The Job Last Month. Tan Said He Planned to Cut Intel’s Operational and Capital Expenses in order to make the Company More Efficient.

Watch: Intel is Dead Money in iTs Current Strategic Form, Says Susquehanna Roland