4 Intel Analysts React To 'Historic Collapse' In Q4 As Investors Head For Exits

Intel Corporation INTC reported lower-than-expected results for the fourth quarter Thursday, with revenue of $14.042 billion, down 8% quarter-over-quarter.

The lackluster quarter was due to further deterioration in demand, with the company's Client Computing Group (CCG) segment being severely impacted by inventory digestion.

The company's Data Center AI (DCAI) segment also saw a 33% year-over-year decline due to contraction in total addressable market (TAM) and share loss to Advanced Micro Devices, Inc AMD.

Intel said it believes the first-quarter will be the bottom for PC shipments.

The company provided first-quarter sales, gross margin and earnings per share guidance that significantly missed expectations.

What is the Street saying Friday about Intel's quarterly earnings print?

Needham & Company: While Intel is taking the pain now, the company is setting up 2023 to be a growth year as compared to other companies in the sector, analyst Quinn Bolton said in a note. 

Bolton has Buy rating on Intel with a $32 price target.

BofA Global Research: Intel’s first quarter margin of 39% is the lowest in its multidecade history and in the semiconductor industry as a whole, Vivek Arya said in a note. Intel’s recent cost actions do not fix competitive or macro headwinds, the analyst said. 

Arya has an Underperform rating on Intel with a $25 price target.

Check out more analyst ratings here. 

Bernstein: While Intel’s fourt-quarter results were weak, its first-quarter outlook is “astonishingly bad” even vs. low expectations, with revenues and gross margins collapsing amid a further weakening environment and an absolutely massive inventory flush, Stacy Rasgon said in a note. 

Ragson has an Underperform rating on Intel and lowered the price target from $23 to $20.

Rosenblatt Securities: "No words can portray or explain the historic collapse of Intel, with management attempting to blame a worst-ever PC inventory digestion dynamic and macro/China/enterprise to an over 20% q/q decline in sales,” Hans Mosesmann said in a note. 

Mosesmann has a Sell rating on Intel and lowered the price target from $20 to $17.

INTC Price Action: Intel shares were down 8.38% at $27.57 Friday morning. 

Photo courtesy of Intel.