Intel stocks fell: Here’s why!


Intel shares closed down 6.4 percent on Friday after the company announced its quarterly and full-year financial results. As you can imagine, the reason for this sharp decline in the shares is the bad numbers. The annual income of the processor giant compared to the previous period a 32 percent decrease and a loss of $664 million announced in the fourth quarter of 2022. surprised both analysts and investors.

There has been a great war going on in the processor world lately. While AMD was pushing Intel hard by attacking with the Ryzen series from the supply of the long stagnation period, Apple's stopping using Intel processors in its computers and making a show with its own processors seriously affected Intel's sales.

Intel shares tumble after figures were released

Intel's financial unit said decline economic uncertainties Although it is related to the decreasing demands due to the decrease in demand, when the subject is examined in depth, it is obvious that the main problem is to lag behind the competitors.

Data center server chips, Intel's highest-margin product, lagged behind its main competitor, AMD. Industry analysts Intel Sapphire Rapids AMD's server chip with server processor Genoa It shows that there is a big price-performance difference between them.

This means that AMD will gain share in the server segment over the next few quarters.

The difference between the processors is already reflected in the numbers. Intel's data center segment revenue fell 33 percent year-over-year in the fourth quarter, while operating profit fell 84 percent.

Cowen analyst Matthew Ramsay, 2023 and 2024 will be tough for Intel. expresses it. Barron's previously warned investors that Intel's situation would worsen, citing server processors, product delays, and growing competitive threats from AMD and Apple.

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