Intel CEO Pat Gelsinger stated that the significant losses stemmed from necessary write-downs on equipment purchased during the pandemic|Axel Buhrmann|CC BY 2.0

Intel reported a net loss of $16.6 billion, way higher than the $1.1 billion analysts expected, for the latest quarter. Revenue was $13.3 billion, down 6% from last year but still above forecasts.

CEO Pat Gelsinger stated that the significant losses stemmed from necessary write-downs on equipment purchased during the pandemic. He emphasized that these restructuring charges were essential for the company’s overhaul.

It is Intel’s largest loss in the company’s 56-year history.

Gelsinger aims to close the technology gap and expand Intel’s chip manufacturing capabilities. He expects revenue in the current quarter to be between $13.3 billion and $14.3 billion.

Additionally, Intel is seeking up to $11.5 billion in government grants to support its growth despite challenges in the AI chip market, where it has missed a target of $500 million in revenue for the year.

Investors reacted positively, raising shares by 8% after hours.