Intel CFO says tariffs increase the possibility for economic recession, there is a possibility of recession

Intel CFO David Zinsner said President Donald Trump Tariffs and vengeance of other countries have increased the possibility of recession.

Zinsner said on the company’s quarterly earnings call on Thursday, “The US and it, as well as very liquid trade policies in regulatory risks, have increased the possibility of an economic recession, with the possibility of growing recession.”

Intel gave better information First-fourth resultPartly because some customers stocked the chips ahead of tariffs, the company said. However, guidance for revenue and profit was less than expectations, which was pushing the chipmaker’s stock below 5% in extended business.

Intel is an forecast for the current quarter $ 11.2 billion to $ 12.4 billion. Zinsner said that the range is “more wider than normal” due to uncertainty due to tariffs.

The company’s approach underlines how to committed to the manufacture of products in the US, even how sensitive manufacturers for those companies are, while Intel makes some of its advanced processors domestic, it is also a partner. Taiwan semiconductor manufacturing company And to manufacture Samsung chips in Korea, and imports chipmaking machinery from ASML in Europe. The company also needs parts and materials that come from China.

Zinsner said that the tariff environment makes it difficult for Intel to predict its performance for the quarter and year, and now it is estimating that the total market for its chips may shrink, especially if consumers stop buying new computers.

“The biggest risk we see is the impact of a potential pullback in investment and expenses, as businesses and consumers react to high cost and uncertain economic background,” Zinsner said.

Although Intel has enough production in uneven places worldwide to reduce some tariffs, the company will definitely see the increase in cost, “he said.

There is a possibility that consumers can opt for laptops and other computers around the older generation chips, which are less expensive, the CEO of Intel Products CEO Mitchell Johnson Holthas said.

Holthas said on an earning call, “Everybody in macroeconomic concerns and tariffs is what is needed from the perspective of an inventory to hedge their bets.”

Beyond the tariff, Intel faced efforts by the US government to require a license to ship advanced chips for artificial intelligence For countries like China,

Intel’s earnings report was under CEO Lip-Bo Tan on Thursday, which was appointed in the job last month. Tan said that he planned Intel’s operations and capital expenditure cut To make the company more efficient.

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