Intel hit its earnings target but cut its full-year revenue forecast amid slumping PC sales and a shift toward tablets and smartphones. Shares initially ticked higher after-hours but then turned lower, and last traded down 4 percent.
"We've lowered our expectations for the traditional PC market and so we've brought our guidance down as a result of that," Intel CFO Stacy Smith said on CNBC's "Closing Bell."
"We were a little slow to recognize the trend toward mobility," he said, but added that the company is starting to see some traction and gain market share in large growth markets in areas such as tablets.
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The world's top chip maker on Wednesday posted second-quarter revenue of $12.8 billion and said revenue in the current quarter would be $13.5 billion, give or take $500 million.
Analysts expected $12.9 billion in revenue for the second quarter and $13.73 billion for the current quarter, according to Thomson Reuters.