Intel stuns market analysts as they end up reporting being $3 Billion short of their revenue forecast, with their worst quarterly performance since the 2001 dot-com bubble, raising fears that the PC market is entering a slump.

[jehurey 3,228]

 

 

2 minute readJanuary 27, 20233:30 PM CSTLast Updated 4 hours ago

Intel's 'historic collapse' erases $8 billion from market value

By Aditya Soni

and Nivedita Balu

 

ather in Memphis after police release Tyre Nichols videoWatch Live

 

 

 

 

 

•  

2 minute readJanuary 27, 20233:30 PM CSTLast Updated 4 hours ago

Intel's 'historic collapse' erases $8 billion from market value

By Aditya Soni

and Nivedita Balu

 

Jan 27 (Reuters) - Intel Corp (INTC.O) saw about $8 billion wiped off its market value on Friday after the U.S. chipmaker stumped Wall Street with dismal earnings projections, fanning fears around a slump in the personal-computer market.

The company predicted a surprise loss for the first quarter and its revenue forecast was $3 billion below estimates as it also struggled with slowing growth in the data center business.

 

Intel shares closed 6.4% lower, while rival Advanced Micro Devices (AMD.O) and Nvidia (NVDA.O) ended the session up 0.3% and 2.8%, respectively. Intel supplier KLA Corp (KLAC.O) settled 6.9% lower after its dismal forecast.

"No words can portray or explain the historic collapse of Intel," said Rosenblatt Securities' Hans Mosesmann, who was among the 21 analysts to cut their price targets on the stock.

Analysts said that puts Intel at a disadvantage even when the data center market bottoms out, expected in the second half of 2022, as the company would have lost even more share by then.

"It is now clear why Intel needs to cut so much cost as the company's original plans prove to be fantasy," brokerage Bernstein said.

"The magnitude of the deterioration is stunning, and brings potential concern to the company's cash position over time."

Intel, which plans to cut $3 billion in costs this year, generated $7.7 billion in cash from operations in the fourth quarter and paid dividends of $1.5 billion.

With capital expenditure estimated to be around $20 billion in 2023, analysts said the company should consider cutting its dividend.

_______

 

Combine this with nVidia also reporting their biggest drop in quarterly sales in almost 20 years, as well. And you have a perfect storm brewing.

[FIREPOWER 710]

PC gaming is dying!!!

 

 

Not really but I can't say I'm not happy to see these greedy companies lose money especially Nvidia.

 

 

[Mr. House 3,371]

Why? Sounds like their forecasts were ridiculously high to me, I don't see why people would stop buying PCs all of a sudden.

[Tears of the Cows 1,206]

Apple made the right move ditching them.