The Intel Corporation (NASDAQ: INTC) stock price trended lower during the premarket trading session as investors waited for the company’s Q1 results. The company is expected to release its Q1 earnings results after the market closes.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Analysts expect the semiconductor manufacturer to report dismal figures for Q1 due to weak demand for chips. In addition, analysts at Investopedia expect the company to report a halving sales of its computer chips as demand for new computers slows amid the challenging economic environment.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
However, nothing is set in stone yet since the company could surprise the upside and report better figures than expected once the market closes. Analyst estimates indicate that most expect Intel to report a 40% decline in group revenues to $11.4 billion, with a net loss of $2.2 billion.
Intel is in the middle of restructuring as it seeks to catch up to its peers in Taiwan and South Korea using extreme lithography. This technology uses light to etch complicated integrated circuits into chips, which should allow it to start manufacturing 7nm chips at scale later this year.
However, Intel still lags behind its peers, such as Taiwan Semiconductors, which already manufactures 5nm chips at scale. The company has a significant tailwind in the US government’s commitment to bringing high-tech chip manufacturing back home.
The US government is committed to investing heavily in companies such as Intel that manufacture their chips in the United States. However, the company must evolve quickly so that the US is not left behind by its peers.
Intel is already lagging behind its key US competitors AMD and Nvidia, which have eaten into its market share in the personal computing space where Intel still leads. However, the two firms have a firm lead in graphics and AI chips, representing the next growth frontier.
Analysts predict Q1 will be brutal for consumer chip manufacturers as consumers spent much less on electronics in Q1 2023. The same was true for corporations that also spent lesson PC upgrades, which should affect Intel significantly, given that most of its revenues come from the PC market.
*This is not investment advice.
The Intel stock price.
The Intel stock price has fallen 14.23% from its April 4, 2023, high of $33.87 to its current price of $29.05.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.