Intel
Therefore, Intel shares have continued to struggle and underperform on nearly every timeframe. Over the past year, shares are down more than 40%. On an even longer-term basis, the stock is down by 45% from its March 2020 levels, while the VanEck Semiconductor ETF
Inside the Numbers
In its fourth quarter, Intel reported $0.10 per share in earnings which fell short of analysts' expectations of $0.20 per share. Revenue also missed expectations at $14.0 billion vs $14.5 billion. Overall, this was a more than 73% decline in earnings, while revenue was also down 32%.
In its upcoming quarter, the company is forecasting a loss of $0.15 per share and revenue between $10.5 billion and $11.5 billion. This was significantly worse than expectations of $0.24 per share in earnings and $13.9 billion in revenue.
Although the company didn't give any guidance for the full year, it was pretty negative in its commentary. CEO Pat Gelsinger said that there is no recovery in sight in the first half of the year.
Weakness was pretty broad-based. The Client Computing Group saw $6.6 billion in revenue, a 36% decline from last year and well below forecasts of $7.7 billion. The company attributed weakness to slowing consumer PC sales, fewer orders from schools, and customers cutting back on inventory.
Its Data Center and AI unit had $4.30 billion in revenue, which was 33% down from last quarter but better than expectations of $4.2 billion. The Network and Edge segment was down 1%, generating $2.1 billion in revenue, in-line with estimates.
The company also said that its factories are running at below capacity due to the macro environment and less demand for its products. As a result, gross margins decreased by 2.2% and are forecast to drop by 4% in Q1.