Semiconductor and computer processor stocks ended last week down sharply, with KLA Corp and Intel pointing to a poor outlook for computer sales.
Intel Corp is forecasting one of the worst quarters in its history, touching off a broader selloff of chips companies as a slowdown in personal computer sales ravages the industry.
“Therefore, the fact the stock is reacting so poorly to its earnings report should weigh on the broad market today.” “I’d like to remind everyone that we’re on a multiyear journey,” Mr Gelsinger said during a conference call on Friday.The stock had increased 14 per cent this year, part of a rally for chip equities, but Intel’s decline wiped out most of that gain.
On an adjusted basis, Intel’s first-quarter forecast marks its first prediction of a loss in decades.