Intel’s market value fell by a record $8 billion
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The market value of shares of Intel Corp decreased by about $8 billion due to forecasts of a loss of profit, as the American manufacturer of microchips fears a decrease in demand in the market of personal computers. This is reported by Reuters.
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The company forecast a surprise loss in the first quarter, and its revenue forecast came in $3 billion below expectations as it also struggled with slowing growth in its data center business.
Falling shares
Intel shares fell 6.4%, while shares of rivals Advanced Micro Devices (AMD) and Nvidia (NVDA) ended the session up 0.3% and 2.8%, respectively. Intel supplier KLA Corp fell 6.9% after its unflattering forecast.
The poor forecast underscores the challenges faced by the company’s chief executive, Pat Helsinger, as he tries to restore Intel’s dominance in the sector by expanding contract manufacturing and building new plants in the US and Europe.
Read also: Microsoft shares fell after the release of the quarterly report and weak forecasts
The company is steadily losing market share to competitors such as AMD, which uses contract chip manufacturers such as Taiwan’s TSMC to manufacture chips that are ahead of Intel’s technology.
Intel, which plans to cut costs by $3 billion this year, generated $7.7 billion in cash from operations in the fourth quarter and paid out $1.5 billion in dividends.
According to estimates, the company’s expenses in 2023 will amount to about $20 billion. Analysts believe that the company should consider reducing dividends.
Source: Ministry of Finance
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