Intel (INTC) Issues Weak Forecast, Shares Plunge 17%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Revenue Decline: Intel's fourth-quarter revenue fell 4% year-over-year to $13.7 billion, primarily due to declining sales in its Client Computing Group, despite growth in its Data Center and AI divisions, indicating pressure in market competition.
- Earnings Miss: Although adjusted earnings per share of $0.15 exceeded Wall Street's estimate of $0.08, management's guidance for first-quarter revenue of $11.7 billion to $12.7 billion fell short of analysts' expectations of $12.5 billion, reflecting unmet market demand.
- Supply Chain Challenges: Intel faces supply shortages, with CEO Tan stating that the company is unable to meet market demand in the short term, which could hinder its ability to attract foundry customers from competitors like TSMC, threatening its long-term growth strategy.
- Market Confidence Eroded: Intel's exclusion from the list of top recommended stocks by analysts has shaken investor confidence, leading to a more than 17% drop in its stock price during Friday's trading, highlighting concerns about its future performance.
Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INTC is 39.30 USD with a low forecast of 20.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 54.320
Low
20.00
Averages
39.30
High
52.00
Current: 54.320
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
