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Intel Corporation CEO Pat Gelsinger speaks at the Senate Commerce, Science, and Transportation Hearing on Semiconductors titled Developing Next Generation Technologies for Innovation, held at the Russell Senate Office Building on Wednesday, March 23, 2022. I will testify at the meeting.
Tom Williams | CQ Roll Call Inc. | Getty Images
intel Shares continued to fall on Friday, dropping as much as 10% after the company reported dismal quarterly and full-year results. The lukewarm quarterly figures for the semiconductor maker, which posted a net loss of $664 million on a 32% year-over-year decline in fourth-quarter 2022 revenue, surprised both analysts and investors.
Intel’s problems, including an oversupply of chips and weakening demand for factories that squeeze margins, aren’t likely to subside anytime soon, and the company expects an adjusted net loss of 15 cents a share in the next quarter. . Analysts cut price targets almost across the board without chopping words.
“There are no words to describe or explain Intel’s historic collapse,” said Rosenblatt analyst Hans Mosesmann. / Trying to blame the company for a 20%+ quarter-on-quarter decline in sales.” In a note from Thursday night. Rosenblatt maintained Intel’s sell rating and lowered its price target from $20 to $17.
Intel shares fell nearly 11% before opening Friday.
It’s an important test for Intel CEO Pat Gelsinger, who will take the top job at the 54-year-old chip company in 2021. It forces retailers to “fix” their inventory, Gelsinger said on a conference call with analysts.
“We know this dynamic will reverse, but it’s hard to predict when,” the CEO told analysts. Intel’s stock is down more than 42% from his 52-week high.
— CNBC’s Michael Bloom, Jordan Novet, and Kif Leswing contributed to this report.