Intel’s stock fell more than 9% after the chipmaker reported a significant miss in the fourth quarter of 2022 and forecasted an adjusted net loss of 15% in the first quarter of 2023.
The loss of value also resulted in a $8 billion drop in the chipmaker’s market value, indicating a 32% year-over-year revenue drop, raising concerns about a personal computer market slump.
The loss is attributed to an oversupply of chips, weakening demand for factories, and declines in the company’s two main business segments. In addition, Intel has been steadily losing market share to competitors such as AMD, which has used contract chipmakers such as Taiwan-based TSMC to produce chips that outperform Intel’s technology.
Intel reported a $664 million net loss, compared to a $4.62 billion profit in the same quarter last year. The company earned $63.1 billion in 2022, a 20% decrease year over year.
Intel shares were down 6.4% at the close, while rival Advanced Micro Devices and Nvidia were up 0.3% and 2.8%, respectively. KLA Corp, an Intel supplier, fell 6.9% after issuing a bleak forecast.
However, Intel, which plans to cut $3 billion in costs this year, generated $7.7 billion in cash from operations and paid $1.5 billion in dividends in the fourth quarter.
The sources for this piece include an article in Reuters.