BUZZ-Intel falls as quarterly forecast disappoints
Intel's shares fell 7.4% after the company forecasted lower Q2 revenue and profit than expected. The weak demand for traditional data center and PC chips, as well as competition in the AI components market, are contributing factors. However, management remains confident that profitability will improve in the second half of 2024. Intel's stock is on track for its biggest monthly loss since January 2008, while rival Advanced Micro Devices (AMD) is up 4.4% this year.
** Intel (INTC.O) shares slump 7.4% at $32.54 premarket after the firm forecasts Q2 revenue and profit below estimates
** Stock top percentage loser among blue-chip Dow (.DJI) members
** Firm faces weak demand for its traditional data center and PC chips and trails in the surging AI components market
** Management is confident June quarter represents a bottom for profitability and anticipates a stronger H2, 2024 on revenue, but beyond that catalysts are few and far between in our view - TD Cowen
** Rival Advanced Micro Devices (AMD.O) up 1.7%
** INTC shares on track for steepest monthly percentage loss since January 2008
** INTC down 30% YTD and AMD up 4.4% in the same period