Pat Gelsinger, CEO, of Intel Corporation, testifies during the Senate Commerce, Science, and Transportation hearing on semiconductors titled Developing Next Generation Technology for Innovation, in Russell Senate Office Building on Wednesday, March 23, 2022.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
“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,” Rosenblatt analyst Hans Mosesmann wrote in a note Thursday evening. Rosenblatt maintained its sell rating for Intel and lowered its price target from $20 to $17.
Intel shares fell nearly 11% before the open Friday.
It’s a significant test for Intel CEO Pat Gelsinger, who took the top job at the 54-year-old chip company in 2021. Factors outside Intel’s control have contributed to both the inventory and production issues, with a slowing PC market pressuring Intel’s margins and forcing retailers to “correct” their inventories, Gelsinger said in a call with analysts.
“While we know this dynamic will reverse, predicting when is difficult,” the CEO told analysts. Intel’s stock is down more than 46% from its 52-week high.
— CNBC’s Michael Bloom, Jordan Novet and Kif Leswing contributed to this report.
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