IntelShares fell by more than 6 percent on Thursday due to a weaker sales report. The company also blamed an unmet industry component shortage as the reason for shrinking its PC chip business.

Intel CEO George Davis said that he will be retiring in May 2022.

This is how Intel compared to Refinitiv’s estimates.

• EPS: $1.71, adjusted, versus $1.11 expected.
• Revenues: Adjusted $18.1 billion to $18.24 million expected.

Intel claimed it would expect $18.3billion in adjusted sales during the current quarter compared to analysts’ predictions of $18.24billion.

Intel’s biggest business, its client computing division, saw a 2% drop in revenue to $9.7 Billion. It includes the PC chip revenue.

The last year has seen strong PC sales as people around the globe needed more desktops and laptops in order to be able to work remotely from their homes. According to analysts, the sales slowdown could mean that the surge in PCs related to pandemics is over.

Intel stated that lower volumes of laptops were the main reason for PC sales falling due to the shortage in chips.

Intel’s Data Center Group sold processors, and other silicon, for data centers. However, sales were down 10% from the year before, while analysts expected $6.66 billion.

Intel has been spending $20 billion on capital this year. This includes a new Arizona semiconductor plant. Intel is spending a lot on new production lines and improving its semiconductor performance to keep investors’ eyes peeled.

It plans to change its business model and become a foundry or manufacturer for other chip design companies. The company will also continue to develop its processors.

A quest to be a foundry can be a very expensive endeavor. However, government support could help offset the costs. Pat Gelsinger was the CEO of this new strategy. He took over earlier in the year.

Intel will likely provide additional details at the analyst day on next month’s Intel technology roadmap.