Following the release of Intel’s unsavory financial report, ca 8 billion dollars The market value of this company was lost. This dramatic drop shows that investors are now more skeptical about the future of the personal computer market.
According to Reuters, in its new financial report, Intel has predicted a significant loss for the first quarter of 2023, and the revenue forecast is about $3 billion below estimates have been. The company even reports a slowdown in its business growth in the data center market.
The stock price of this company on Friday with 6.4 percent drop faced, while rivals including Advanced Miro Devices and Nvidia experienced growth of 0.3 and 2.8 percent, respectively. Meanwhile, Intel supplier KLA Corp, which also posted a disappointing financial report, fell 6.9 percent.
Hans Mossmann from Rosenblatt Securities said in this regard: “No words can show or explain the historic fall of Intel.” The major chip maker apparently expects that with 40% drop in income to face This level of revenue decline was last seen for Intel around 2002, after the dot-com bubble burst.
Intel’s tough challenges are not over
This chaotic situation shows what challenges Pat Gelsinger, the CEO of this American chip maker, is facing in trying to restore the company to its position in the chip market. Since taking the CEO seat, he has tried to expand Intel’s chipmaking contract services and build new factories in the United States and Europe.
In the fourth quarter of 2022, the company had about $7.7 billion in operating income and paid out $1.5 billion in dividends. Now, analysts say that Intel will have to cut its dividend as capital expenditures reach $20 billion in 2023.
“The magnitude of the decline is staggering and raises concerns about the company’s long-term cash position,” says Bernstein.