Connect with us

Tech

Intel’s Stock Dives Due To Bleak Forecasts And Weak Demand For PC Chips

Published

on

Intel's Stock Dives Due To Bleak Forecasts And Weak Demand For PC Chips

(CTN News) – Following the chipmaker’s announcement of a bleak first-quarter revenue outlook, Intel (INTC.O) shares fell nearly 12% on Friday.

In the case of premarket losses, the chipmaker was expected to lose about $25 billion in market value, based on its share price of $43.65. In 2023, its stock had surged 90%.

Intel is the exception to this trend, analysts say, due to fears that it is behind the competition in data center AI while many businesses in the chip sector have been bullish lately.

Intel’s bread and butter market, the PC and laptop processing chip market, has been slowing down, according to Russ Mould, AJ Bell’s investment director.

The data-hungry AI industry could leave Intel behind as chips from Nvidia and Advanced Micro Devices play an increasingly important role.

The forecast was worse than feared, as revenue could miss market estimates by more than $2 billion in the current quarter. Profit forecasts of 13 cents a share were also below expectations.

While Intel is not yet competitive in the AI chip market,

Its central processing units (CPUs) are often used in conjunction with Nvidia’s AI chips, with a third of Intel’s server CPUs now sold as AI chips. According to Third Bridge semiconductor analyst Lucas Keh, investors’ disappointment with Intel’s Data Center GPU story’s growth can be attributed primarily to slower-than-expected product delivery and ramp-up.

A gloomy forecast from one of the largest chipmakers dampened hopes that the PC market would rebound, sending shares of other chipmakers lower. The share price declined 1 to 2.5% in Nvidia (NVDA.O), Advanced Micro Devices (AMD.O), Qualcomm (QCOM.O), and Micron Technology (MU.O).

AMD’s stock trades at 45.08 times its 12-month forward earnings estimates, while Nvidia’s stock trades at nearly 30 times.

SEE ALSO:

NVIDIA And Advanced Micro Devices: Price Forecast And Technical Analysis

Continue Reading

CTN News App

CTN News App

české casino

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies