The report for the second quarter from Intel turned out to be disappointing – the company lost 22% of revenue compared to last year. Profitability fell to 36.5% from 50.4%, and the net loss was $454 million. Intel shares fell 10% after financial results were released, reports CNBC.

“The sudden and rapid decline in economic activity was the largest driver of the shortfall but Q2 also reflected our own execution issues in areas like product design, and the ramp of AXG [Accelerated Computing Systems and Graphics Group] offerings,” says Intel CEO Pat Gelsinger.

He noted that Intel continues to struggle with supply shortages caused by the COVID-19 pandemic. Because of it, the company delivered products with a delay.

Intel CFO David Zinsner said small and medium-sized businesses have slowed computer purchases, but businesses are holding up. The updated forecast takes into account the weakening economy, which will cause businesses to delay PC upgrade cycles.

“We do think we’re on the bottom,” Zinsner says. He adds that the company hopes to return margins to the usual 51-53% due to seasonal improvement and rising prices in the next quarter.

Intel urges the government not to delay legislation that will support American chipmakers. Thanks to this support, the company hopes to complete the plant in Ohio. The Chips and Science Act has already been passed by the US House of Representatives. It was given to Joe Biden.

“This is historic legislation,” says Intel’s CEO. According to the law, the company hopes to receive funding in 2023.

We remind that the shortage of chips and the general economic instability affected many technological companies. Apple’s profit for the last quarter decreased by 11%. It amounted to $19.4 billion, which is the worst indicator since 2020.