Intel
shares were reeling early Friday after the company gave weak guidance for the current quarter. Analysts said it could take time for the company to get back on track.
It’s still the biggest chip maker in the world and has gotten a boost from the artificial intelligence hype that has also benefited rivals such as
Nvidia
and AMD. But Intel has yet to deliver. Chief Financial Officer David Zinser predicted a “sub-seasonal first quarter” on the earnings call.
Intel shares plunged 12% in premarket trading to $43.69. Coming into Friday’s session, they were up 53% over the past three months.
Rick Schafer and his team at Oppenheimer kept a Neutral rating on the shares after Thursday’s earnings report. They note that Intel’s traditional markets for PCs and servers aren’t growing quickly any more, while its AI offers remain “prove-it.”
“We remain on the sidelines as turnaround efforts take root,” Oppenheimer wrote.
Lucas Keh, an analyst at Third Bridge, noted that investors were disappointed with growth in Intel’s data center processor. The slow delivery of the chips raised the question of how much demand there is for alternatives to Nvidia’s processors, he said.
Nvidia shares slipped 1.7% in the premarket.
AMD
was down 3%, while
IBM
fell 0.3%. Futures for the technology-heavy
Nasdaq
index traded 0.8% lower.
Write to Brian Swint at [email protected]
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