{"id":89558,"date":"2024-02-01T06:41:12","date_gmt":"2024-02-01T11:41:12","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89558"},"modified":"2024-02-01T06:41:14","modified_gmt":"2024-02-01T11:41:14","slug":"intels-stock-sees-worst-plunge-in-more-than-three-years-yet-another-major-reset","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89558","title":{"rendered":"Intel\u2019s stock sees worst plunge in more than three years: \u2018Yet another major reset\u2019"},"content":{"rendered":"
\n

As Intel Corp.\u2019s stock plunged to its biggest one-day drop in about three and a half years, analysts had some harsh words for the chip maker.<\/p>\n

\u201cHow many times can you push the reset button?\u201d Bernstein\u2019s Stacy Rasgon asked in a note to clients. <\/p>\n

\n

While he thought many investors were bracing for the company to miss on its first-quarter forecast, the outlook came in \u201cextremely weak and clearly worse than feared.\u201d Intel
\n INTC,
\n +0.37%<\/bg-quote>
\n expects $12.7 billion in revenue at the midpoint, while analysts had been looking for $14.3 billion. <\/p>\n

See more:<\/strong> Intel seen struggling to \u2018find its footing\u2019 as guidance miss sends stock tanking<\/p>\n

\u201cAfter yet another major reset this story probably just shifted to 2026 at the earliest for the bulls, and there is a lot of meat for the bears to sink their teeth into in the meantime,\u201d Rasgon wrote, while sticking with his market-perform rating and $42 target price. <\/p>\n

Baird\u2019s Tristan Gerra highlighted challenges for Intel\u2019s data-center and artificial-intelligence unit, which is \u201con track for a third consecutive year of revenue declines,\u201d while his own revenue forecast implies a 14-year low.<\/p>\n

Gaudi, the company\u2019s accelerator chip for artificial-intelligence applications, \u201cdoes not seem enough to lift [data-center] revenue, while gross margin will be impacted by higher depreciation inclusive of an expected U.S. Chip Act credit,\u201d Gerra continued. <\/p>\n

He also expressed some concerns about the company\u2019s broader road ahead. <\/p>\n

\u201cCan top-line growth in future years be sufficient to fund continued node migration?\u201d Gerra said. \u201cMany hurdles remain, notably ramping units from this year\u2019s small base (small baseline for Intel 4 makes it more challenging to yield at the next node), while [the Intel Foundry Service] revenue ramp entirely depends on future node execution including yield and performance.\u201d <\/p>\n

Gerra has a neutral rating and $40 target price on Intel\u2019s stock. <\/p>\n

Shares fell 11.9% in Friday trading, making for their worst single-day percentage decline since July 24, 2020, when they fell 16.2%, according to Dow Jones Market Data. <\/p>\n

Needham\u2019s N. Quinn Bolton, meanwhile, downgraded the stock to hold from buy in the wake of Thursday afternoon\u2019s report, calling the earnings reset \u201cunexpected.\u201d <\/p>\n

\u201cIn addition to an overall worsening risk-reward, Intel\u2019s core [data-center] business is challenged by a shift to accelerated computing architectures and direct competition from AMD and ARM,\u201d he wrote. \u201cWe expect AI to remain the spending priority in the data center for the next several quarters. To that end, dollars will continue moving away from Intel\u2019s core competency.\u201d<\/p>\n

Read:<\/strong> Missed the boat on AMD\u2019s stock surge? Why this analyst says you\u2019re not too late.<\/p>\n

Rosenblatt\u2019s Hans Mosesmann took a similar view as he argued that Intel\u2019s sales outlook is \u201ccontrary to the uber bullish messaging to the Street and is consistent with share losses to AMD, a lack of any perceivable AI growth vector that moves any dial, and points to another, yes another, transitional year.\u201d <\/p>\n

Artificial intelligence \u201cseems like everywhere except at Intel,\u201d he continued, noting that his stance on the stock \u201chas not changed for many years.\u201d Mosesmann continues to rate it at sell. <\/p>\n

Opinion:<\/strong>\u00a0Intel\u2019s stock plunge shows that Wall Street still hasn\u2019t learned its lesson on AI hype<\/p>\n

Raymond James analyst Srini Pajjuri, however, was more upbeat about Intel\u2019s ability to capitalize on AI. \u201cWhile Intel won\u2019t likely get much credit for AI in the near term, we are encouraged by the growing pipeline for Gaudi accelerators ($2b+) and expect meaningful revenue contribution\u201d in the second half of 2024, he wrote, while sticking with his outperform call but cutting his target price to $52 from $54.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As Intel Corp.\u2019s stock plunged to its biggest one-day drop in about three and a half years, analysts had some harsh words for the chip maker. \u201cHow many times can you push the reset button?\u201d Bernstein\u2019s Stacy Rasgon asked in a note to clients. While he thought many investors were bracing for the company to […]<\/p>\n","protected":false},"author":1,"featured_media":89559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-89558","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nIntel\u2019s stock sees worst plunge in more than three years: \u2018Yet another major reset\u2019 | iFintechWorld<\/title>\n<meta name=\"description\" content=\"As Intel Corp.\u2019s stock plunged to its biggest one-day drop in about three and a half years, analysts had some harsh words for the chip maker. \u201cHow many\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=89558\" \/>\n<meta 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