Intel Shares falls, after disappointing earnings

Jan 27, 2023 thejournalbiz

Intel had reported a fourth-quarter net loss of $664 million!

Intel Corp. shares slid more than 7% to $27.76 Friday after it reported a loss in the fourth quarter as shifting demand and a battle for market share darkens its outlook in the months ahead.

Tweet on Intel stock

Shares of Intel were down sharply in afternoon trading Friday after the chipmaker late yesterday reported a fourth-quarter loss and a downbeat outlook for the current quarter!#intel #semiconductor pic.twitter.com/TTcEW3TrKI

— The_Journalbiz (@the_journalbiz) January 27, 2023

Refinitiv Chart on Intel

The chip maker said after the bell on Thursday that it swung to a quarterly net loss of $664 million as sales fell by nearly a third to $14 billion. Intel’s sales slump has been made worse by a steep downturn in the personal computer market after PC shipments fell 28.5% in the final quarter of 2022.

The stock is on pace for its largest decline since October 2021.

Semiconductor companies have been sitting on a surplus of chips following a pandemic-driven shortage that was fueled by both supply chain constraints and high demand for digital products.

Intel, still the largest U.S. semiconductor maker by revenue, hasn’t been immune to the shifting dynamics and said Thursday that another shortfall would likely follow in the first quarter of the new year

The gloomy prospects led more than a dozen analysts to cut their price targets for Intel stock, though none went so far as to downgrade their rating.

Several analysts said that although Intel has warned of recent macroeconomic challenges persisting throughout the first half of 2023, management elected to only provide guidance for the first quarter as visibility into the markets this year remains cloudy.

Among those challenges is stiffening competition, with rivals such as Advanced Micro Devices Inc. and Nvidia Corp. snatching up market share as they innovate their “respective technology road maps,” Stifel analyst Ruben Roy said in a research note Thursday.