Intel stock tumbles after brutal results
Pat Gelsinger, CEO, of Intel Corporation, testifies during the Senate Commerce, Science, and Transportation hearing on semiconductors titled Developing Next Generation Technology for Innovation, in Russell Senate Office Building on Wednesday, March 23, 2022.
Intel shares continued to slide Friday, falling as much as 10% after the company reported dismal quarterly and full-year results. The chipmaker's tepid quarterly numbers, with a 32% year-over-year revenue decline and a net loss of $664 million for the fourth quarter of 2022, took both analysts and investors by surprise.
Intel's troubles, which include a surfeit of chips and weakening demand for factories pressing on its margin, are unlikely to abate soon, with the company guiding to an adjusted net loss of 15 cents per share for the upcoming quarter. Analysts did not mince words, cutting price targets almost across the board.
"No words can portray or explain the historic collapse of Intel, with management attempting to blame a worst-ever PC inventory digestion dynamic and macro/China/enterprise to an over 20% q/q decline in sales," Rosenblatt analyst Hans Mosesmann wrote in a note Thursday evening. Rosenblatt maintained its sell rating for Intel and lowered its price target from $20 to $17.