Text measurement
Intel
Dreamstime
Intel
‘s disappointing outcomes and warning of a contracting data-center market knocked the inventory in a few of its key rivals on Friday.
Intel
(ticker: INTC) shares had been down 10% in premarket buying and selling after the chip maker missed expectations for the fourth quarter and supplied a income forecast for its March quarter far under expectations.
Advanced Micro Devices
(AMD) traded down 2.9% in premarket buying and selling, whereas
Nvidia
(NVDA) fell 2.1%.
Intel’s warning that the data-center market would contract within the first half of this 12 months was taken as significantly poor information for AMD and
Nvidia
,
which compete closely within the sector.
“[Intel] continues to deal with the postpandemic slump in demand after the work-from-home and IT infrastructure upgrade wave boosted sales the prior two years,” analysts at Saxo Bank mentioned in a analysis notice. “In part, the weak estimate is due to customers having stockpiled significant inventories that must be worked through before demand for components rises again.”
Intel wasn’t the one chip firm to disappoint. Semiconductor-equipment maker
KLA Corp
(KLAC) on Thursday warned of falling buyer demand. KLA inventory was down almost 6% in premarket buying and selling.
However, firms that promote chips to the automotive and industrial sectors have struck a brighter tone of their earnings updates. European chip maker
STMicroelectronics
(STM) on Thursday reported outcomes forward of consensus expectations, boosted by auto firms in search of to make up for chip shortages final 12 months.
More disruption might be coming to the sector. Japan and the Netherlands are set to affix the U.S. in proscribing China’s entry to superior chip-making know-how, Bloomberg reported on Friday, citing folks accustomed to the negotiations.
Write to Adam Clark at [email protected]
www.barrons.com
