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UPDATE 1-Intel cuts annual revenue forecast for second time this year

(Adds details on net income, background)

Oct 27 (Reuters) - Chipmaker Intel Corp on Thursday cut its 2022 revenue forecast for the second time this year as a slump in PC demand looks set to worsen and recession fears muddy the outlook for the data center market.

Surging inflation has prompted consumers to rethink buying computers and other gadgets, forcing electronics companies to cancel orders for components such as chips as they struggle to clear inventory.

PC shipments fell 15.5% in the third quarter, data from Counterpoint Research showed. The research firm expects a 13% drop for the full year, higher than Intel's estimate of a roughly 10% decline.

Chipmakers have also come under pressure from concerns that the threat of a global recession could prompt clients from the more lucrative data center market to wind down spending.

Net income for the third quarter ended Oct. 1 was $1.02 billion, or 25 cents per share, compared with a profit of $6.82 billion, or $1.67 per share, a year earlier

The company now expects annual revenue of about $63 billion to $64 billion, compared with $65 billion to $68 billion estimated earlier. Its original forecast was for about $76 billion.

Analysts on average expect annual revenue of $65.26 billion, according to Refinitiv data. (Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee; Editing by Devika Syamnath)
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