📉 Even an earnings beat didn’t help: Intel plunged nearly 25% in premarket trading. Today, it’s the chip stocks’ turn to pay the bill for AI’s money-burning spree.
The third quarter actually wasn’t bad: revenue was $16.5 billion, up 21% year over year, and adjusted earnings were $0.52 per share, beating the $0.41 expected. Data center and AI revenue grew 78% to $7.3 billion.
The problem was the guidance. Fourth-quarter revenue is forecast at just $15 billion to $16 billion, versus expectations of around $17.1 billion. Earnings of $0.25 per share are also well below the $0.43 expected.
The ripple effects are already here: Nasdaq futures fell more than 2% this morning, AMD was down about 8.6% premarket, and Nvidia dropped nearly 3%. Binance had just experienced a security incident that same morning, and the market was already on edge. Intel’s plunge was like plucking the taut string one more time.
Honestly, the beat doesn’t matter anymore. The market is asking just one question: when will all that money spent start paying off? If there’s no answer, sell first.
I’m not catching this falling knife. The premarket price is just a reflection of sentiment. I’d only call it a bottom if the stock gets back above $92.07 (the October 29 closing price) after the open. A drop below the premarket low of $69.34 would mean sentiment hasn’t bottomed out yet.
It’s not that AI spending is off-limits; it’s that you need to explain what returns it will bring. If you can’t, you’ll take a hit like this. $NVDA $AMD
#英特尔INTC #美股超话 #INTC
The third quarter actually wasn’t bad: revenue was $16.5 billion, up 21% year over year, and adjusted earnings were $0.52 per share, beating the $0.41 expected. Data center and AI revenue grew 78% to $7.3 billion.
The problem was the guidance. Fourth-quarter revenue is forecast at just $15 billion to $16 billion, versus expectations of around $17.1 billion. Earnings of $0.25 per share are also well below the $0.43 expected.
The ripple effects are already here: Nasdaq futures fell more than 2% this morning, AMD was down about 8.6% premarket, and Nvidia dropped nearly 3%. Binance had just experienced a security incident that same morning, and the market was already on edge. Intel’s plunge was like plucking the taut string one more time.
Honestly, the beat doesn’t matter anymore. The market is asking just one question: when will all that money spent start paying off? If there’s no answer, sell first.
I’m not catching this falling knife. The premarket price is just a reflection of sentiment. I’d only call it a bottom if the stock gets back above $92.07 (the October 29 closing price) after the open. A drop below the premarket low of $69.34 would mean sentiment hasn’t bottomed out yet.
It’s not that AI spending is off-limits; it’s that you need to explain what returns it will bring. If you can’t, you’ll take a hit like this. $NVDA $AMD
#英特尔INTC #美股超话 #INTC
