Intel Stock Forecast: INTC down nearly 11% in premarket as poor guidance spreads worries


  • Intel stock has lost nearly 11% in the premarket
  • INTC dropped on account of Thursday's evening's quarterly release.
  • Intel missed earnings expectations by half and revenue consensus by $500 million.
  • CEO Pat Gelsinger said current quarter's revenue would be $3 billion below expectations.

Well, that did not go as planned. Intel (INTC) launched the semiconductors earnings season with a severe cut to their guidance late Thursday. Now INTC stock has plunged -10.7% in the premarket and is trading below $27. Both Nvidia (NVDA) and Advanced Micro Devices (AMD) have lost about 2% in light of the results. With these big guns selling off, the NASDAQ futures are also selling off. With its dividend less safe than in the past, nearly everyone seems to be ditching the king of microprocessors. Intel stock is now in danger of falling back to support from 2015 and maybe even breaking below there.

Intel stock news: A $3 billion revenue shortfall in quarterly guidance

Intel produced earnings per share of $0.10 during its earnings call late Thursday. This was half of what Wall Street consensus was heading into the results. The cratering demand in the PC space seems to still be the main culprit, but Intel also appears to be losing more ground to AMD in the data centre segment. Revenue came in poorly as well for the quarter ending in December at $14 billion, about half a billion dollars less than consensus. 

Much worse than the quarter's results was that Intel expects the drought to continue and get more severe. In fact, they named $11 billion as the midpoint on their guidance for the current quarter. They also predicted a loss of $-0.15 for the current quarter and said gross margin would fall to 39%. This from the company that used to produce gross margins above 60%.

Analysts had previously thought Intel would earn $0.25 a share during the current quarter and have sales just under $14 billion.

CEO Patrick Gelsinger said that "persistent macro headwinds will continue in the near term," but he added that the second half of the year should feature a turnaround of sorts. Still most observers think Intel is in a risky era, and many question if the legacy chipmaker can continue with its generous dividend.

Intel stock forecast

$24.87 is the long-term low for Intel stock and hails from August 2015. You read that correctly. Intel bulls are now counting on a support line from eight years ago to hold up. $24.87 also held up again in October of last year, so maybe there is some reason to believe it will stand tall. There also may be short-term support from last December's range low near $25.50. Close observers will note that volume was down somewhat in December and January compared to the November period. 

INTC 4-hour chart

Otherwise, a cut to the dividend or even worse news in subsequent quarters will likely send INTC stock down to the monthly S3 at $22.80.

INTC monthly chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD languishes near multi-year low after RBA meeting minutes

AUD/USD languishes near multi-year low after RBA meeting minutes

AUD/USD remains depressed after the December RBA meeting minutes reiterated that upside inflation risks had diminished, which reaffirms bets for a rate cut in early 2025. This, along with concerns about China's fragile economic recovery and US-China trade war, undermines the Aussie and weighs on the currency pair.

AUD/USD News
USD/JPY sticks to positive bias after BoJ meeting minutes

USD/JPY sticks to positive bias after BoJ meeting minutes

USD/JPY holds steady above the 157.00 mark and moves little following the release of the October BoJ meeting minutes, emphasising a cautious approach to monetary policy amid domestic and global uncertainties. Adding to this, doubts over when the BoJ will hike interest rates again, which, along with a positive risk tone, undermines the safe-haven JPY.

USD/JPY News
Gold flat lines above $2,600 ahead of holiday trading week

Gold flat lines above $2,600 ahead of holiday trading week

Gold price trades flat around $2,610 during the early Asian session on Tuesday. Markets face a relatively quiet trading session ahead of the holiday trading week. The US Richmond Fed Manufacturing Index for December is due later on Tuesday. 

Gold News
Ethereum risks a decline to $3,000 as investors realize increased profits and losses

Ethereum risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures