Is Intel losing money?

Intel Corp. ended 2022 with its worst financial results since the dot-com bust more than 20 years ago, thanks to a double whammy of a downturn in both PCs and data centers that isn't going to turn around anytime soon.

Is Intel still profitable?

Intel's Q4 2022 revenue and non-GAAP (adjusted) earnings per share (EPS) fell a respective 32% and 92% compared to a year ago. Things will get worse before they get better. Revenue, at the midpoint of guidance, will fall another 40% year over year in the first quarter of 2023.

How is Intel doing financially?

Full-year revenue was $63.1 billion, down 20 percent YoY and down 16 percent YoY on a non-GAAP basis.

Why Intel is losing money?

Intel's revenue plummeted 32% year over year to $14 billion in the fourth quarter. A steep decline in the personal computer (PC) market weighed heavily on the semiconductor giant's results. A slowdown in the server market also took a toll. Intel is slashing expenses to better withstand the downturn.

Is Intel on the decline?

Intel hit hardest by declining PC market

Gartner reported that this was the steepest decline since it started tracking the PC market in the mid-1990s.

The END of Intel Stock?

Will Intel ever recover?

TSMC started mass-producing its 3nm chips in late 2022. Gelsinger insists Intel remains "on track to regain transistor performance and power performance leadership by 2025." Still, the company plans to reduce costs by $3 billion in 2023 while also ramping up its development and production of new chips.

Is Intel too big to fail?

Despite struggles to launch new products, rising geopolitical pressure, and increased competition, this company is making the necessary investments to address the challenges it faces. The stock price indicates the market is expecting a worst-case outcome, but this company is Too Big To Fail for the U.S. economy.

Why is Intel stock doing so poorly?

Intel's absolute and relative stock price underperformance for 2022 is justified on the basis that the company ceded market share to Advanced Micro Devices (AMD) in the server CPU segment and its overall profitability has been deteriorating.

Why is Intel stock doing poorly?

Factors outside Intel's control have contributed to both the inventory and production issues, with a slowing PC market pressuring Intel's margins and forcing retailers to “correct” their inventories, Gelsinger said in a call with analysts.

Why is Intel in trouble?

Along with falling demand for chips used in personal computers, the company faces stiff competition in the server chips that are its most profitable business. That issue has worried Wall Street, with Intel's market value plunging more than $120 billion since Mr. Gelsinger took charge.

Will Intel grow in the future?

Analyst Future Growth Forecasts

Revenue vs Market: INTC's revenue (1.9% per year) is forecast to grow slower than the US market (7% per year). High Growth Revenue: INTC's revenue (1.9% per year) is forecast to grow slower than 20% per year.

Does Intel have a lot of debt?

Intel long term debt from 2010 to 2022. Long term debt can be defined as the sum of all long term debt fields. Intel long term debt for the quarter ending December 31, 2022 was $37.684B, a 12.46% increase year-over-year.

Is Intel debt free?

Fitch Ratings downgraded Intel's long-term debt to A- from A+. Fitch said at the time that it expected Intel to be free-cash-flow negative from 2023 to 2025 as it continues its super-investment cycle to regain its manufacturing leadership.

Why is Intel losing market share?

Intel remained the market leader with a 71% share, although far from the share that it commanded till 2018. Its revenue from the segment dropped 16% YoY in 2022. The market share declined primarily due to delays in next-generation products and weakness in enterprise spending due to macroeconomic conditions.

Is Intel a high risk stock?

Bottom line. In summary, while Intel stock may appear undervalued based on valuation analysis, investors should be cautious before investing in the stock. The risks and uncertainties facing the company are significant, and there are indications that the company will continue to lose market share to its competitors.

Is Intel a good long term investment?

However, Intel's stock could be a solid investment for long-term investors due to the company's potential to access a significant pool of public funds to decrease the costs of turnaround.

Should I hold or sell Intel stock?

Intel has received a consensus rating of Hold. The company's average rating score is 1.90, and is based on 5 buy ratings, 18 hold ratings, and 8 sell ratings.

Is Intel stock a value trap?

Conclusion. Intel's Q4 2022 performance was a bad. And the company's outlook for early 2023 is even worse. With such a frame of reference, I argue Intel continues to be a value trap.

Is Intel dividend safe?

While the range of estimates shows that some analysts are expecting a dividend cut at Intel in 2023 and 2024, the consensus outlook for Intel's dividend remains favorable. Past data and future projections (from Wall Street analysts) suggest that Intel's dividend is safe.

Is Intel losing to AMD?

OAKLAND, Calif/BANGALORE, Jan 27 (Reuters) - Microprocessor giant Intel Corp (INTC. O) says it will regain its footing against AMD and other chip rivals which are gobbling up market share, but Wall Street is skeptical.

Is Intel winning against AMD?

Overall, Intel's Raptor Lake family holds the single-threaded performance crown. Winner: Intel. For professionals on the hunt for performance in content creation and productivity applications, the winner of AMD vs Intel CPUs goes to Intel on the strength of its x86 hybrid architecture.

Is Intel a failing company?

Intel's INTC, -0.06% annual earnings fell more than 60% in 2022, and revenue for the year dove more than 20%, declines that the legendary Silicon Valley chip maker has not seen since 2001, when the end of the dot-com boom brought in a profit decline of 88% and sales dropped 21%.

Who is replacing Intel?

2021. In April 2021, Apple released a redesigned 24-inch iMac based on the M1 to replace the 21.5-inch Intel model.

Does Warren Buffett own Intel stock?

Berkshire Hathaway's Intel Stake

The first Intel trade was made in Q3 2011. Since then Warren Buffett bought shares one more times and sold shares on two occasions.

Is Apple getting rid of Intel?

Apple will begin to reduce software support for Intel-based Macs at a faster rate from 2023 and beyond. The company has already started to phase out Intel-based Macs in favor of its new line of Apple Silicon Macs. Apple has been using Intel processors since 2006 when they transitioned from PowerPC to Intel X86.