Intel ‘s Weakening Benefited AMD Stocks

Intel experienced a huge hit, with their stock dropping by 6.41% to $28.16 on the NASDAQ exchange – at one point, even declining in double digits. This drop is especially concerning when we look back two years ago when Intel was near its all-time high of just under $70 per share. In stark contrast, AMD’s stocks rose 0.32% to $75.40 and have seen an increase of 17% since the start of this year.

Intel Might Hit Rock Bottom Soon.

Analyst Ross Seymore from Deutsche Bank shared his concern over Intel’s underwhelming forecast for the first quarter, which predicts a 22 percent decrease in revenue compared to the fourth quarter. He described it as “the worst quarter-on-quarter decline since the financial crisis” and noted that Intel broke with its traditional practice of providing full-calendar-year guidance.

Seymore is convinced that the current quarter could finally signify a financial turnaround, yet he can’t help but be frightened of its potential magnitude. Such apprehension may lead investors to doubt not only if their returns are possible but also when exactly structural corporate revival will occur.

Intel AMD

Big Investment Companies Are Pessimistic, Too.

Chris Caso, an analyst at Credit Suisse, gave a dismal forecast for Intel and decreased his estimation of the stock’s price. Furthermore, two large US investment firms – JPMorgan and Bank of America – both bearish on Intel’s prospects and also cut their own forecasts. According to Harlan Sur from JPMorgan, due to AMD’s growing competition, as well as its “mediocre track record” in certain areas, makes it hard for Intel to bridge the gap in performance between them, even during these trying economic times.

Intel is facing a challenging period as the veteran in semiconductors struggles with slumping PC markets and diminishing revenues from data centers. In Q1, sales across both divisions fell by over 30%, while operating profit dipped an astonishing 80%. Unfortunately, Intel CEO Pat Gelsinger has not seen any signs of improvement for the current quarter due to weak economic conditions.

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Jose Sequeira

Strong media and communication professional with a MA in Broadcast Journalism from City University and a BA in Media Studies with Spanish from the University of Sussex. Started my career as a journalist I have been working for almost 10 years in different regional and national news channels along with assorted media and still now I am working for different digital content creators. I love staying up to date with the latest developments in the crypto world, and I'm always on the lookout for new and innovative blockchain projects. I believe that crypto has the potential to revolutionize the way we think about finance and money, and I'm committed to bringing the most important news and analysis to my readers. With my extensive knowledge of the industry and my ability to spot emerging trends, I'm confident in my ability to keep my readers informed and engaged in this fast-paced and rapidly changing space.

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