Intel cautioned that higher costs from the Trump administration’s tariffs created economic uncertainty for the chip maker.

“We will certainly see costs increase and we feel it prudent to anticipate” a contraction, Chief Financial Officer David Zinsner said during the company’s earnings call on Thursday. “The biggest risk we see is the impact of a potential pullback in investment and spending as business and consumers react to higher costs in the uncertain economic backdrop.”

Yet customers raced to buy electronics ahead of the tariffs, which buoyed the company’s first-quarter sales to $12.7 billion, beating analysts’ estimates. Because of the economic uncertainty and difficulty planning, Intel was offering a wider-than-normal projection for the current quarter of $11.2 billion to $12.4 billion.