The electronics industry has been mostly on the up and up the past few years due to pent-up demand for parts used in next-generation technologies, as well as to satisfy the demand for consumer electronics such as PCs and large-screen flat-panel TVs brought on by the COVID-19 pandemic. While the recent economic slowdown has not been fully felt in the electronics industry, there are some hints major electronics suppliers are bracing for some uncertainty in the coming months.

Signs of a possible industry slowdown have appeared in recent months. More COVID-19 related plant shutdowns hit the industry earlier this year, with some suppliers at the time expressing caution on second-quarter outlooks. Supply-chain issues, including part shortages and delayed deliveries, persist despite some predictions this issue would subside in the months ahead.

Tech employment has also slowed down the past few months, with the most affected companies appearing to be relatively new or startup companies receiving VC funding that expanded employment rapidly the past few years and have had to pull back on hiring.

A look at recent earnings announcements clearly indicates that so far, Intel is bearing has borne the brunt of the bad news.  

Intel reported second-quarter revenue of $15.3 billion, down 22% year-over-year. Intel posted a second-quarter net loss of $0.5 billion, or 11 cents per share, compared to net earnings of $5.1 billion, or $1.24 per share in the same quarter a year ago. Intel’s second-quarter gross margin tumbled 20.6% from 57.1% a year ago to 36.5%. The results all fell below analysts’ estimates.

Related:Is Intel Losing its Memory and (Manufacturing) Mind?

Intel said its results are adversely affected by adverse market conditions in its Client Computing and Datacenter and AI Groups, while its Network and Edge Group and Mobileye show year-over-year increases. Intel’s Foundry Services Group also saw revenue tumble.

Some of Intel’s dismal results could be attributed to a slumping PC market. That sector received a big boost from the COVID-19 pandemic when remote work caused sales of PCs to surge. With that surge long gone, the PC market has seen declining sales.

Intel has revised its full-year revenue to $65 billion to $68 billion, down from the $76 billion it originally forecast earlier this year.

Intel’s main rival AMD had somewhat better results. The company posted second-quarter earnings of $447 million or 27 cents per share, on sales of $6.6 billion, in its second quarter. A year ago, AMD earned $710 billion, or 58 cents per share, on sales of $3.85 billion.

Related:Are Darker Days Ahead for Tech Employment?

AMD saw revenue increase across all of its operating groups, including Data Center, Client Computing, Gaming, and Embedded. The company’s earnings were affected by the amortization of intangible assets related to its acquisition of Xilinx.

The company forecasts third-quarter sales of $6.5 to $6.9 billion, which is slightly less than analysts’ estimates. AMD projects full 2022-year income of $26.3 billion.

Gaming Slump Hits Nvidia

Another key semiconductor supplier, Nvidia, will officially announce its earnings in a few weeks, but preliminary results are not too promising. The graphics and AI chip supplier said in a released statement that for the quarter ended July 31, revenue is projected at $6.7 billion, down 19% sequentially though up 3% from a year ago. Nvidia attributes the decline to weaker than expected revenue from its Gaming sector, where sales are pegged at $2.04 billion, down 44% sequentially and down 33% from the same quarter a year ago.

Nvidia stated that revenue in its Data Center sector was projected to be $3.81 billion, up 1% sequentially and up 61% from the same quarter a year ago, but that would fall short of original company projections due to ongoing supply-chain disruptions.

Other electronics suppliers appeared to fare better in their June quarters. STMicroelectronics posted second-quarter earnings of $867 million or 92 cents per diluted share on sales of $3.84 billion, which the semiconductor supplier said came in above the mid-point of its original guidance. Compared to the same quarter a year ago, STMicroelectronics posted 28.3% higher sales and doubled its net income. The company saw sales improve in all of its sectors, including Automotive and Discrete, Microcontrollers and Digital ICs, and Analog, MEMS, and Sensors.

TE Connectivity Ltd., a major global electronics component supplier, said sales for its June quarter were $4.1 billion, up 7% over a year ago, with earnings of $594 million or $1.83 per share, up 5% over a year ago. The company said its orders of $4.2 billion and book-to-bill ratio of 1.02 reflected continuing strong customer demand.

For its current quarter, TE Connectivity expects sales and earnings to slightly increase sequentially.