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Intel (NASDAQ:INTC) tumbled more than 6% in extended-hours trading after the semiconductor giant reported fourth-quarter results that missed expectations and issued first-quarter guidance that indicated further weakness for the Pat Gelsinger-led company.
For the period ending December 31, Intel (INTC) earned 10 cents per share on $14.04B in revenue, as Client Computing revenue and Datacenter and AI-related revenue tumbled, falling 36% and 33% year-over-year, respectively.
The company’s nascent foundry business, which Gelsinger is working to help lead Intel’s (INTC) transition, generated $319M in revenue in the quarter, up 30% year-over-year.
A consensus of analysts expected Intel (INTC) to earn 20 cents per share on $14.5B in revenue.
Looking to the first-quarter, Intel (INTC) expects to lose 15 cents per share, excluding one-time items, with revenue forecast to be between $10.5B and $11.5B. The company also expects gross margins to fall below 40%, coming in at 39%.
Analysts expect the company to earn 25 cents per share, $13.96B in sales and gross margins of 45.5%.
AMD (AMD) and Nvidia (NVDA) fell in sympathy following Intel’s (INTC) results.
In addition to the financial results, Intel (INTC) announced earlier this week that Frank Yeary would be the new Chairman of its board of directors. Yeary replaces Dr. Omar Ishrak, who stepped down as chair, but will remain on the board.
Santa Clara, California-based Intel (INTC) will hold a conference call at 5 p.m. EST to discuss the results.
Earlier this month, Intel (INTC) CEO Pat Gelsinger said the company was still in talks with Italy to build a fab in the country but was talking to other European countries as well.
