Data center revenue decreased by 16% YoY, while the most significant segment, client computing (PC business), accounted for $7.7 billion in sales but still recorded a drop of 25% YoY. CEO Pat Gelsinger was unhappy with the results, claiming they were below Intel standards and shareholders’ expectations for the company. Gelsinger explained the results in part with a ‘rapid decline’ in economic activity and the other part with their execution issues.
INTC chart and analysis
Year-to-date (YTD) INTC shares are down over 25%, maintaining a negative long-term trend. Over the last month, the stock traded between $35.05 and $40.73 range, staying at the lower range of its 52-week price movement. The support level is now at $33.66 while resistance has moved to $36.33. Meanwhile, TipRanks analysts rate the shares as a hold, seeing the average price in the next 12 months reaching $41.36, 4.16% higher than the current trading price of $39.71. David Zinsner, Intel’s CFO sounded more optimistic pointing out that Intel will return its gross margins to its target range by the fourth quarter. Supply chain issues, rising energy prices, and inflation are slowly working their way into company earnings statements, especially the ones that have had subpar results. Despite the “Chips Act” talk in the U.S., investors should pay attention to the earnings, guidance, and challenges firms are highlighting to choose a winning stock that will get through the deteriorating macro environment intact. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
