Chip stocks end week mixed as Intel hits 52-week low after ‘below standard’ quarter

Andrei Berezovsky/iStock Editorial via Getty Images

Semiconductor stock was mixed on Friday, as investors took a closer look at Intel (Nasdaq: INTC) warnings about the lack of the second quarter and the rest of the year.

Advanced Micro Devices (Nasdaq: AMD), Texas Instruments (TXN), Analog Devices (ADI.)) and on semiconductor (Feather) was led by a 1.5% increase in AMD on Friday, as analysts forecast Dr. Lisa Su-led company could benefit from Intel (INTC) Shortage.

Baird analyst Tristan Gera wrote, “The shift in consumer patterns on home entertainment devices, combined with a weak first-half season, suggests no PC recovery in the near term, resulting in challenging gross margin recovery.” has a low-usage rate.” Note to clients downgrading to Intel (INTC).

Gera said a delay in Intel’s (INTC) product roadmap should benefit Advanced Micro Devices (AMD) in the server market in the second half of the year.

AMD is set to report second quarter results next week.

Conversely, Nvidia (NVDA), Qualcomm (QCom) and Micron Technology (MU) fell 2% in the session for Qualcomm (QCom), as investors worried about the company’s weak fourth-quarter guidance. to continue.

Other chip makers, such as Broadcom (AVGO), Qorvo (QRVO) and Skyworks Solutions (SWKS), oscillate between fractional gain and loss.

Intel (INTC) Shares fell about 9% After touching a 52-week low of $35.24 earlier in the session, in midday trading.

Chief executive Pat Gelsinger said the company’s second-quarter results were “below the standards set for the company and our shareholders,” while adding the chip giant would cut its expenses and expenses for the rest of the year.

Read |  what are they, and where are they going

Intel (INTC) sees third-quarter revenue between $15B and $16B, well below analysts’ expectations of $18.67B. Non-GAAP gross margin is expected to be 46.5% with earnings per share of $0.35. The company lowered its full-year outlook for sales to between $65B and $68B, compared to a previous outlook of $76B and analysts’ expectations of $74.76B.

On Thursday’s earnings call, Intel (INTC) Gelsinger praised the fact that US legislators passed the CHIPS Act, a bill that will now go to President Biden to sign into law.

Source link