Historic collapse, Intel’s stock price plummeted and its market value evaporated by more than 50 billion

Intel

Phoenix Net Technology News Beijing time on January 27th news, Intel said on Thursday that it expects to post a loss in the current quarter, and at the same time gave a more bleak outlook for the PC market and its key slow-growing data center sector. That surprised investors, sending shares down more than 9% in after-hours trading .

“ We faltered, we lost market share, we lost momentum. We think we’ll stabilize this year, ” Intel CEO Pat Gelsinger said on the fourth-quarter conference call. He said that Intel’s share of the data center market has been declining, which is actually an affirmation of the strength of its rival AMD.

At Thursday’s close, Intel shares rose 1.31%. As of 18:53 U.S. Eastern Time on Thursday (7:53 U.S. Friday Beijing Time), Intel’s stock price fell by $2.93 to $27.16, a drop of 9.74%, with a market value of $124.2 billion. Meanwhile, shares of other chip companies are also falling. AMD fell 2.6 percent and Nvidia fell 2 percent.

Intel shares fell 9.74% after hours

Two of Intel’s most important markets have enjoyed two years of strong growth, backed by a boom in telecommuting during the pandemic, but are now showing weakness. Today, the PC industry is grappling with a glut of chips as demand for consumer electronics slumps, while recession-fearing enterprise customers are slowing spending on data centers.

Customers are also clearing inventory, Kissinger said. “We expect to see some of the largest inventory adjustments we’ve seen in the industry, which will have a significant impact on first-quarter guidance ,” he said.

” It all depends on the recovery of the PC market. AMD is not immune ,” said Wayne Lam, an analyst at CCS Insight. “Don’t think we’ve seen a trough in Intel stock … they’re not running a sustainable business model.”

Intel’s profit margin fell to 43.8% in the fourth quarter of last year from 58.4% in the fourth quarter of 2020, and is expected to decline further in the first quarter. Angelo Zino, an analyst at CFRA Research, said: ” It is safe to say that it will take a long time for Intel to return to its goal of 60% profit margin going forward. ” (Author/Xiao Yu)

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