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Home » Intel Stock Plunges Following Dismal Results

Intel Stock Plunges Following Dismal Results

28 January 2023, Saturday
Intel’s shares tumbled 6.4% on Friday, after the tech giant reported its dismal fourth-quarter and full-year results. Revenue was down 32% from the same period last year and the company posted a net loss of $664 million. The bad news sent shockwaves throughout the market, with analysts slashing their price targets for Intel.

Going forward, Intel warned that the situation could remain unfavorable, predicting an adjusted net loss of 15 cents per share for the current quarter. Contributing to the poor outlook is the overproduction of chips and weakening demand for its factories, which is having a damaging effect on its margins.

No words can convey the unparalleled downfall of Intel, with the company's leadership attempting to attribute the record-breaking plummet in PC inventory, as well as impacts from macroeconomic issues, China and the enterprise, to a reduction of more than 20% in sales on a quarterly basis. According to analyst Hans Mosesmann at Rosenblatt, they are maintaining their sell rating for Intel and have dropped the price target from $20 to $17.

It is a major test for Intel CEO Pat Gelsinger, who assumed the position of head of the 54-year-old chip producer in 2021. Besides Intel, external factors have been affecting the stock and manufacturing issues, with the slowing down of the PC market impacting Intel’s profit margins and driving dealers to adjust their inventories. Gelsinger said in an analyst call that while they understand the condition will improve, it is hard to predict when. Intel's shares have dropped by greater than 46 % from their 52-week high.
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