{"id":2160026,"date":"2024-01-26T11:11:02","date_gmt":"2024-01-26T16:11:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/intel-tumbles-as-chipmaker-falls-further-behind-in-ai-race\/"},"modified":"2024-01-26T11:12:45","modified_gmt":"2024-01-26T16:12:45","slug":"intel-tumbles-as-chipmaker-falls-further-behind-in-ai-race","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/intel-tumbles-as-chipmaker-falls-further-behind-in-ai-race\/","title":{"rendered":"Intel&#8217;s AI setback causes stock decline"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fintel-tumbles-as-chipmaker-falls-further-behind-in-ai-race%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2160026&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Intel Slumps Over 12% Following Bleak Revenue Outlook<\/h2>\n<p>January 26, 2024 \u2013 \u20627:39 \u200cAM PST<\/p>\n<p>(Reuters) \u2013 Intel (INTC.O) experienced \u200ca significant drop of more than 12% on Friday after revealing a gloomy first-quarter revenue forecast.\u200d The chipmaker is struggling to catch up in the \u2062AI race while also grappling with a\u2064 weak PC market.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">\n<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>\n<\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>While AI is driving a boom\u200c in the chip sector, Intel seems to be falling behind, according to analysts. Semiconductor makers\u200c that produce chips for the high data demands of generative AI were among the top performers \u200din the stock market\u2064 in 2023.<\/p>\n<p>The disappointing forecast from Intel, one\u2064 of the leading\u2063 suppliers of \u2064PC chips, had a negative impact on the rest of the sector. The Philadelphia SE Semiconductor Index\u2064 (.SOX) experienced a 2.7% decline, marking its worst day \u2062in over three weeks.<\/p>\n<p>\u201cAI seems like it&#8217;s everywhere\u2063 except at\u2062 Intel,\u201d commented \u200cHans Mosesmann, an analyst at Rosenblatt Securities, which has a sell rating on the stock.<\/p>\n<p>The lack of any noticeable \u2063AI growth strategy &#8220;points to another, yes another, transitional year,&#8221; he added.<\/p>\n<p>Shares \u200cof other chipmakers, including Nvidia\u2062 (NVDA.O), Advanced Micro Devices (AMD.O), Qualcomm (QCOM.O), and Micron Technology (MU.O), \u200dalso \u2062saw declines ranging from 1.3% to 2.8%.<\/p>\n<p>If losses hold, Intel is expected to lose approximately $26 billion in market value, based on its current share price of \u2064$43.47 in morning trade. The company&#8217;s shares had surged by 90% in 2023.<\/p>\n<p>The chipmaker&#8217;s forecast \u200bfor the current quarter suggests\u2064 that its revenue could fall short of market estimates by over $2\u200c billion.<\/p>\n<p>\u201cThere\u2019s a danger\u2063 Intel is being left behind \u200das chips \u2064from the \u2063likes of Nvidia and Advanced Micro Devices \u2063play \u200dan increasingly important role in the data-hungry AI industry,\u201d warned Russ Mould, investment director at AJ Bell.<\/p>\n<p>Although Intel is not yet competitive in the AI-specific chip \u200bmarket, its central processing units (CPUs) are often used alongside\u200b Nvidia&#8217;s AI chips, with \u200ba\u2063 third of Intel&#8217;s server CPUs now being \u200bsold as\u200b part of AI systems.<\/p>\n<p>Some analysts have\u200b positive views on the stock, with at least 15 brokerages raising \u2063their price \u200ctargets.\u2064 The median price among brokerages is $44, according to LSEG data.<\/p>\n<p>\u201cThe company still stands to benefit from its AI investment\u200d in the long run. Margins appear solid, meaning\u2064 that CEO Pat Gelsinger\u2019s plan will still be implemented, albeit at a slower pace,\u201d stated Thomas Monteiro, senior analyst at Investing.com.<\/p>\n<p>According to LSEG data, \u2064Intel&#8217;s stock\u200d is trading at around 28 times its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-stocks-crash-in-biggest-plunge-since-2008-as-shenzhen-goes-into-lockdown\/\" title=\"Chinese Stocks Crash in Biggest Plunge Since 2008 as Shenzhen Goes Into Lockdown\">12-month forward earnings estimates<\/a>, compared to 45.08 for AMD and nearly 30 for Nvidia.<\/p>\n<p><sup>Reporting by Samrhitha \u200cArunasalam in\u2063 Bengaluru; \u2064Editing \u2063by Shailesh Kuber<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\">Share this post!<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Iranian-backed Houthis\u200b do not seem deterred by the\u2063 message the U.S. is \u200bsending to stop them from further attacks in the Red Sea.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>GOP \u2063Governors\u200c stand with\u200c Governor Abbott against the Biden\u200b Administration, \u2063Peter Navarro is sentenced, and allegations \u2064are leveled against Vince McMahon.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Donald\u2063 Trump has declared that he\u2062 has already won Nevada in the Republican Primary process.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>President Donald Trump and his team have turned their eyes towards Nevada and South Carolina after winning the New Hampshire primary.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Intel slumped more than 12% on Friday following a bleak first<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/foxconn-cautiously-optimistic-about-q4-outlook\/\" title=\"Foxconn \u2018cautiously optimistic\u2019 about Q4 outlook\">-quarter revenue outlook<\/a>.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Microsoft will let go of 1,900 employees at Activision Blizzard and\u2064 Xbox this week.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Tesla tumbled nearly 11% on Thursday after CEO Elon Musk warned sales growth would slow \u200cthis year despite price cuts.<\/p>\n<\/div>\n<div class=\"entry-content\">\n<p>Tesla has told suppliers it wants to start production of a new mass market\u2063 electric vehicle \u2064codenamed \u201cRedwood.\u201d<\/p>\n<\/div>\n<p> <\/p>\n<h2> How has Intel struggled to keep up in the AI race, and how has this affected its position in the semiconductor market?<\/h2>\n<p><span>  \u200b Gomerie, an analyst at Berenberg.<\/p>\n<p>Intel has been facing a two-fold challenge in the market. First, it is struggling to \u2062keep up in the fiercely competitive AI race. As AI technology becomes more prevalent across various industries,\u2064 the demand\u2062 for high-performance chips that can \u2064handle the\u200d massive data requirements of AI applications \u2064has \u200bskyrocketed. However, Intel\u200d seems to be falling behind\u200b its competitors in this field. \u200dSemiconductor makers who have positioned themselves as leaders in the AI chip\u2063 market have\u2063 experienced significant growth and success in \u200drecent years, while Intel&#8217;s presence in this \u2062sector has been relatively lackluster.<\/p>\n<p>Second, the chipmaker is\u2062 also grappling\u200d with a weak PC market. As\u2062 the proliferation of smartphones and tablets continues, \u2062the \u2064demand for\u2063 traditional personal computers has been steadily declining. Intel,\u200d as one of the \u2063leading suppliers of PC chips, has felt the impact of this market shift. The disappointing revenue forecast \u200dfrom Intel has \u2063not only affected its own stocks but has also had \u200da negative ripple effect on the \u200drest of\u200d the sector. The Philadelphia SE Semiconductor Index, which tracks the performance of various semiconductor \u2062companies, experienced a \u2063decline as a result of Intel&#8217;s gloomy outlook.<\/p>\n<p>Hans \u2062Mosesmann, \u2064an \u200danalyst at Rosenblatt Securities, remarked that &#8220;AI seems like it&#8217;s everywhere except at Intel.&#8221; He further expressed skepticism about the company&#8217;s AI growth\u200b strategy, stating that it\u2062 points to another\u2064 transitional year for Intel. This sentiment was echoed by Russ\u200c Mould, investment director\u200c at\u2064 AJ Bell, who warned that Intel is in danger \u200dof being left behind as competitors like Nvidia and Advanced Micro Devices play an increasingly\u2062 important role in the data-hungry AI industry.<\/p>\n<p>Despite these \u2063challenges, some analysts\u200d remain positive about Intel&#8217;s \u2062long-term prospects.\u2063 At least 15 \u200bbrokerages have raised \u200ctheir \u2064price targets for\u2064 the stock, indicating confidence in the\u2062 company&#8217;s \u200cpotential. The median price among these brokerages \u2062is $44, according to LSEG data. Additionally, Intel&#8217;s central processing units (CPUs)\u200c continue to be widely used \u2063alongside Nvidia&#8217;s\u2062 AI chips. \u200dIntel&#8217;s CPUs are\u2062 sold as \u200dpart of AI systems, with a third of its server CPUs\u2063 being utilized in this \u200cmanner. This suggests that even though Intel may not be \u200ccompetitive \u200cin the AI-specific chip market, it still\u2062 stands to benefit from the\u2064 growth of the overall \u2062AI\u200d industry.<\/p>\n<p>Intel&#8217;s CEO, \u2062Pat Gelsinger, has outlined a plan to address these\u200c challenges and position the company for future success. Although \u2063the implementation of this plan may proceed at a slower pace than initially anticipated, analysts\u200d believe that Intel&#8217;s solid margins and\u2063 AI investments will eventually yield positive results. However, for now, \u2062the company must navigate \u200dthe difficulties of the\u2063 AI race and the weakening PC market, while competitors continue to \u2063thrive in these areas.<\/p>\n<p>The drop in Intel&#8217;s stock price following the bleak revenue \u2064outlook reflects the \u2062concerns of investors regarding \u200dthe\u2063 company&#8217;s ability \u200cto overcome\u2063 these challenges. If the losses continue, Intel stands to lose approximately $26\u2064 billion in market value. This underscores the urgency\u200d for the chipmaker \u2062to address its \u200bshortcomings in\u2063 the AI race and find innovative ways to navigate the changing dynamics of \u200cthe PC market.<\/p>\n<p>Overall, Intel&#8217;s\u2062 struggles in\u200b the face \u2063of the AI race\u200b and the weak PC market highlight\u2063 the \u200dever-evolving\u200d nature of the semiconductor industry. As \u200dtechnology continues to\u2064 advance and\u200d new trends emerge, companies must\u2064 adapt and innovate to remain competitive.\u200d The success of semiconductor companies in navigating these challenges will determine their position in the market and their ability to capitalize on\u2062 future \u200copportunities.\u200b For Intel, the road ahead may be \u2062challenging, but \u200cwith the right strategy and execution,\u2062 the chipmaker can regain its footing and thrive in the dynamic world of technology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Intel (INTC.O) shares dropped over 12% after a disappointing Q1 revenue forecast. The chipmaker struggles to keep up in the AI race and faces challenges in a sluggish PC market. Despite the chip sector&#8217;s growth due to AI, Intel appears to be falling behind<\/p>\n","protected":false},"author":1911,"featured_media":2160027,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2160026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2160026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2160026"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2160026\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2160027"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2160026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2160026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2160026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}