Intel CFO David Zinsner said President Donald Trump’s tariffs and retaliation from other countries has increased the likelihood of a recession.

“The very fluid trade policies in the U.S. and beyond, as well as regulatory risks, have increased the chance of an economic slowdown, with the probability of a recession growing,” Zinsner said on the company’s quarterly earnings call on Thursday.

Intel reported better-than-expected first-quarter results, partially because some customers stockpiled chips ahead of tariffs, the company said. However, guidance for revenue and profit was below expectations, pushing the chipmaker’s stock down more than 5% in extended trading.

Intel’s forecast for the current quarter is $11.2 billion to $12.4 billion. Zinsner said the range is “wider than normal” due to uncertainty caused by tariffs.

The company’s outlook underscores how sensitive manufacturers are to trade restrictions, even for companies that are committed to building products in the U.S. While Intel manufactures some of its advanced processors domestically, it also partners with Taiwan Semiconductor Manufacturing Company and Samsung in Korea to manufacture chips, and imports chipmaking machinery from ASML in Europe. The company also needs parts and materials that come from China.

Zinsner said the tariff environment makes it harder for Intel to predict its performance for the quarter and the year, and added that it’s now anticipating that the total market for its chips could shrink, especially if consumers stop buying new computers.

“The biggest risk we see is the impact of a potential pullback in investment and spending, as businesses and consumers react to higher costs and the uncertain economic backdrop,” Zinsner said.

Although Intel has enough production in disparate places around the world to mitigate some of the tariffs, the company “will certainly see costs increase,” he added.

One possibility is that consumers may opt for laptops and other computers based around older-generation chips, which are less expensive, said Michelle Johnston Holthaus, CEO of Intel Products.

“The macroeconomic concerns and tariffs have everybody kind of hedging their bets in what they need to have from an inventory perspective,” Holthaus said on the earnings call.

Beyond tariffs, Intel faces efforts by the U.S. government to require licenses to ship advanced chips for artificial intelligence to countries like China.

Intel’s earnings report on Thursday was its first under CEO Lip-Bu Tan, who was appointed to the job last month. Tan said he planned to cut Intel’s operational and capital expenses in order to make the company more efficient.

WATCH: Intel is dead money in its current strategic form, says Susquehanna Roland

Alphabet reported Thursday that Waymo, its autonomous vehicle unit, is now delivering more than 250,000 paid robotaxi rides per week in the U.S.

CEO Sundar Pichai said Waymo has options in terms of “business models across geographies,” and the robotaxi company is building partnerships with ride-hailing app Uber, automakers and operations and maintenance businesses that tend to its vehicle fleets.

“We can’t possibly do it all ourselves,” said Pichai on a call with analysts for Alphabet’s first-quarter earnings. 

Pichai noted that Waymo has not entirely defined its long-term business model, and there is “future optionality around personal ownership” of vehicles equipped with Waymo’s self-driving technology. The company is also exploring the ways it can scale up its operations, he said.

The 250,000 paid rides per week are up from 200,000 in February, before Waymo opened in Austin and expanded in the San Francisco Bay Area in March. 

Waymo, which is part of Alphabet’s Other Bets segment, is already running its commercial, driverless ride-hailing services in the San Francisco, Los Angeles, Phoenix and Austin regions.

Earlier this month, Waymo and its partner Uber, began allowing interested riders to sign up to try the robotaxi service in Atlanta when it opens this summer. 

The early pioneer in self-driving technology, Waymo has managed to beat Elon Musk-led Tesla and a myriad of now-defunct autonomous vehicle startups to the U.S. market.

Tesla is promising that it will be able to turn its Model Y SUVs into robotaxis by the end of June for a driverless ride-hailing service it plans to launch in Austin.

After about a decade of promises and missed deadlines, Tesla still does not offer a vehicle that’s safe to use without a human at the wheel ready to steer or brake at all times.

Musk criticized Waymo’s approach to driverless tech on his company’s first-quarter earnings call on Tuesday. Musk said Waymo autonomous vehicles are “very expensive” and made in only “low volume.” Tesla’s partially automated driving systems rely mostly on cameras to navigate, while Waymo’s driverless systems rely on lidar technology, other sensors and cameras.

Would-be competitors to Waymo also include Amazon-owned Zoox, Mobileye, May Mobility and international autonomous vehicle companies such as WeRide and Baidu’s Apollo Go.

WATCH: Tesla vs. Waymo: Musk casts doubt on Google’s robotaxi strategy