Intel
CEO
Pat
Gelsinger
speaks
during
an
event
called
AI
Everywhere
in
New
York,
Thursday,
Dec.
14,
2023.
Intel
shares
slumped
12%
on
Friday
for
their
steepest
drop
since
July
2020,
after
the
chipmaker
issued
a
forecast
for
the
current
quarter
that
came
in
far
short
of
analysts’
estimates.
In
its
earnings
report
late
Thursday,
Intel
beat
on
profit
and
revenue,
but
the
chipmaker
said
it
expected
adjusted
earnings
of
13
cents
per
share
this
quarter
on
between
$12.2
billion
and
$13.2
billion
in
sales.
Analysts
were
expecting
earnings
of
33
cents
per
share
on
$14.15
billion
of
revenue,
according
to
LSEG,
formerly
Refinitiv.
Intel’s
revenue
guidance
for
the
first
quarter
was
below
every
analyst’s
estimate,
according
to
CNBC
research.
While
some
parts
of
the
semiconductor
industry
are
booming
because
of
strong
demand
for
artificial
intelligence
chips,
other
server
parts,
such
as
the
central
processing
units,
or
CPUs,
that
Intel
makes,
don’t
have
the
same
kind
of
momentum.
The
consensus
analyst
estimate
for
Intel’s
earnings
for
the
second,
third
and
fourth
quarters
of
Intel’s
2024
all
fell
on
Friday.
Intel
CEO
Patrick
Gelsinger
told
analysts
on
the
earnings
call
that
first-quarter
sales
performance
would
take
a
hit
because
of
weakness
at
Mobileye,
where
Intel
owns
a
majority
stake,
as
well
as
in
the
company’s
programmable
chip
unit.
He
also
said
the
company’s
core
businesses
of
PC
and
server
chips
remained
“healthy”
and
would
report
sales
at
the
low
end
of
the
seasonal
range.
“While
such
a
large
miss
is
clearly
a
negative,
we
are
somewhat
encouraged
that
the
drivers
of
the
incremental
weakness
are
largely
outside
of
INTC’s
‘core’
PC/DC
CPU
segments,”
Deutsche
Bank
analyst
Seymour
Ross
wrote
in
a
note
Friday.
As
of
Friday
afternoon,
Intel
shares
were
trading
at
$43.68.
They’re
down
13%
for
the
year
after
almost
doubling
in
2023.
WATCH:
Intel
stock
sinks
as
early
2024
outlook
comes
up
short
watch
now
