With a 12% drop, Intel shares experienced their worst drop since July 2020 (July and August 2019). The drop in Intel stock came as a result of the company’s weaker-than-expected forecasts for the first quarter of 2024. Analysts expected Intel to prepare for significant growth in the first quarter of 2024.
According to CNBCIntel said in its new financial report that it was able to earn profit and revenue beyond expectations. Of course, the company expects adjusted earnings per share to reach 13 cents in the current quarter and earn between $12.2 billion and $13.2 billion in revenue.
Before Intel’s financial report, analysts had predicted that the company would achieve revenue of $14.15 billion and adjusted earnings per share of 33 cents in the first quarter of 2024.
While some parts of the semiconductor industry are booming due to high demand for AI chips, others, such as the CPUs that Intel makes, are not.
Analysts’ forecasts for Intel’s earnings in the second, third and fourth quarters of 2024 were lowered after the company announced its new report.
Pat GelsingerThe CEO of Intel told analysts about the company’s sales figures that this was due to the poor performance of Mobileye, which is in the field of technologies. car operates and Intel owns the majority of its shares.
Gelsinger also announced that the company’s core business, i.e. chips for servers and personal computers, have been doing well and will announce their sales results at the end of the first quarter of 2024.
The price of Intel processor has increased in the last year, while the price of CPU of other brands, including the price of AMD processor, did not face any particular growth.
