After the chipmaker released fourth-quarter earnings that fell short of analysts’ expectations and provided a weaker-than-expected forecast, Intel shares dropped by as much as 9% in extended trading on Thursday. Intel reported $14 billion in non-GAAP revenue for the three months that ended on December 31, 2022. The result fell short of consensus projections.
The first quarter will likely bring investors additional suffering. According to Intel, adjusted net loss would be 15 cents per share on revenue between $10.5 billion and $11.5 billion. Refinitiv’s survey of analysts found that they predicted earnings of 24 cents per share and revenue of $13.93 billion.
Because of “the uncertainty in the current environment,” Intel CEO Pat Gelsinger refrained to offer a full-year prediction during a conference call with analysts. According to the company’s presentation on its findings, Intel will contend with “continued economic headwinds” for at least the first half of the year.
The Client Computing Group of Intel, which comprises PC chips, generated $6.63 billion in revenue in the fourth quarter. According to Intel, customers reduced their inventory as demand decreased primarily in the consumer and educational segments. In comparison to previous quarters since it started monitoring the market in the 1990s, Gartner reported that the PC market fell more dramatically.
Mobileye, a manufacturer of technology and software for autonomous vehicles that Intel purchased in 2017 for $15.3 billion, made its Nasdaq debut during the quarter. The majority of Mobileye’s voting power remains under Intel’s control.
After-hours trading for Intel’s stock is currently down more than 7% as a result of negative investor reaction to the company’s most recent earnings report. This is due to the company’s underwhelming Q4 2022 performance and its extremely dovish Q1 2023 guidance.
Since Intel is the first business in this group to release its earnings for the final quarter of 2022, it will act as a bellwether for the larger semiconductor industry this time around.
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