Intel (INTC) Outlook Looks Dim According To Some Analysts
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Summary:
- According to Zack’s, both EPS and Sales will drop in Q3 earnings.
- Intel announced its 13th Gen Intel Core i9-13900K
Intel (INTC) Share price drops
Semiconductor stocks have suffered significantly as a result of consumers turning to essentials rather than technology purchases due to the economic downturn. When there is high inflation, finding affordable food, clothing, and housing becomes extremely crucial, and mortgage rates are at their highest point since the 2008 financial crisis.
The highly cyclical nature of the semiconductor industry makes the current market climate more perilous for these stocks. However, Intel (INTC) has experienced a rather significant drop. Investors have witnessed competitor Advanced Micro Devices (AMD) mature and eat into Intel's market share in front of their very eyes over the past five years.
Compared to the S&P 500, Intel stock has fallen -47% so far this year, about twice as much. This has not been the case for the Semi-General Market as a whole, with AMD down -52% and Intel's Zacks Sub Industry down -48% YTD. Despite the negative market conditions currently present for semiconductor companies, Intel's decline started some time ago.
According to Zacks projections, third quarter earnings will come in at $0.34 per share, down -80% from the same period last year. Additionally, a 19% decline in third-quarter sales, to $15.57 billion, is predicted.
In 2022, INTC's annual earnings are predicted to decline -59% year over year, but they are predicted to increase 16% in FY23. Although sales are projected to increase by 3% to $68.23 billion in FY23, they are predicted to decline by 15% this year.
Intel announced its 13th Gen Intel Core i9-13900K, branded as the "world's fastest desktop CPU," with which gamers, streamers, and others may experience "blazing clock speeds" of up to 5.8 gigahertz, in what could be seen as a single-handed attempt to revitalize the PC chip business. This is unquestionably a direct shot at the 5.7 megahertz Ryzen 9 7950X CPU from Advanced Micro Devices.
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Sources: finance.yahoo.com, fool.com
