š Even an earnings beat didnāt help: Intel plunged nearly 25% in premarket trading. Today, itās the chip stocksā turn to pay the bill for AIās money-burning spree.
The third quarter actually wasnāt 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. Intelās plunge was like plucking the taut string one more time.
Honestly, the beat doesnāt matter anymore. The market is asking just one question: when will all that money spent start paying off? If thereās no answer, sell first.
Iām not catching this falling knife. The premarket price is just a reflection of sentiment. Iād 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 hasnāt bottomed out yet.
Itās not that AI spending is off-limits; itās that you need to explain what returns it will bring. If you canāt, youāll take a hit like this. $NVDA $AMD
#č±ē¹å°INTC #ē¾č”č¶ čÆ #INTC
The third quarter actually wasnāt 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. Intelās plunge was like plucking the taut string one more time.
Honestly, the beat doesnāt matter anymore. The market is asking just one question: when will all that money spent start paying off? If thereās no answer, sell first.
Iām not catching this falling knife. The premarket price is just a reflection of sentiment. Iād 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 hasnāt bottomed out yet.
Itās not that AI spending is off-limits; itās that you need to explain what returns it will bring. If you canāt, youāll take a hit like this. $NVDA $AMD
#č±ē¹å°INTC #ē¾č”č¶ čÆ #INTC
