As Intel Corp.’s stock flirted Friday with the possibility of seeing its biggest one-day drop in more than two years, analysts had some harsh words for the chip maker. “How many times can you push the reset button?” Bernstein’s Stacy Rasgon asked in a note to clients.
While he thought many investors were bracing for the company to miss on its first-quarter forecast, the outlook came in “extremely weak and clearly worse than feared.” Intel
INTC,
+0.94%
expects $12.7 billion in revenue at the midpoint, while analysts had been looking for $14.3 billion. See more: Intel seen struggling to ‘find its footing’ as guidance miss sends stock tanking “After yet another major reset this story probably just shifted to 2026 at the earliest for the bulls, and there is a lot of meat for the bears to sink their teeth into in the meantime,” Rasgon wrote, while sticking with his market-perform rating and $42 target price. Baird’s Tristan Gerra highlighted challenges for Intel’s data-center and artificial-intelligence unit, which is “on track for a third consecutive year of revenue declines,” while his own revenue forecast implies a 14-year low. Gaudi, the company’s accelerator chip for artificial-intelligence applications, “does not seem enough to lift [data-center] revenue, while gross margin will be impacted by higher depreciation inclusive of an expected U.S. Chip Act credit,” Gerra continued. He also expressed some concerns about the company’s broader road ahead. “Can top-line growth in future years be sufficient to fund continued node migration?” Gerra said. “Many hurdles remain, notably ramping units from this year’s small base (small baseline for Intel 4 makes it more challenging to yield …
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While he thought many investors were bracing for the company to miss on its first-quarter forecast, the outlook came in “extremely weak and clearly worse than feared.” Intel
INTC,
+0.94%
expects $12.7 billion in revenue at the midpoint, while analysts had been looking for $14.3 billion. See more: Intel seen struggling to ‘find its footing’ as guidance miss sends stock tanking “After yet another major reset this story probably just shifted to 2026 at the earliest for the bulls, and there is a lot of meat for the bears to sink their teeth into in the meantime,” Rasgon wrote, while sticking with his market-perform rating and $42 target price. Baird’s Tristan Gerra highlighted challenges for Intel’s data-center and artificial-intelligence unit, which is “on track for a third consecutive year of revenue declines,” while his own revenue forecast implies a 14-year low. Gaudi, the company’s accelerator chip for artificial-intelligence applications, “does not seem enough to lift [data-center] revenue, while gross margin will be impacted by higher depreciation inclusive of an expected U.S. Chip Act credit,” Gerra continued. He also expressed some concerns about the company’s broader road ahead. “Can top-line growth in future years be sufficient to fund continued node migration?” Gerra said. “Many hurdles remain, notably ramping units from this year’s small base (small baseline for Intel 4 makes it more challenging to yield …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]