Intel (INTC.US) stock fell over 2.5% in premarket despite the fact that the major chipmaker posted better than expected quarterly results for the period ended Dec. 26, after market close on Wednesday.
- EPS: $1.09, adjusted, versus $0.91 expected, record revenue: $19.5 billion, adjusted, versus $18.31 billion expected. Intel raised its quarterly cash dividend 5% to $0.365 per share.
- Intel CEO Pat Gelsinger sees 'unprecedented' global demand for chips in the coming year, but notes that supply chain constraints will continue into early 2023. Just about all chip companies are expanding now to meet that demand, and Intel recently said it would spend $20 billion on new manufacturing in Arizona.
Ongoing pandemic caused supply chain issues which in turn negatively affected gross profit margins in recent years. Source: Bloomberg
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Open account Try demo Download mobile app Download mobile app- Client computing group sales dropped 7% to $10.1 billion, but that was partly offset by a 20% increase of data center revenues, which rose to $7.3 billion.
- Data Center sales saw a pick-up of 17% in volume of units compared to previous year, and a jump of 4% in average selling price, Intel said. Compared to Q3's level, units and prices rose by 8% and 3%.
- Internet of things was $1.06 billion, up from $777 million a year earlier. Mobileye was $99 million, down from $110 million a year earlier. The NSG group was $354 million, up from $76 million, while PSG was $51 million, down $43 million.
- The client computing group benefited from a 7% rise in desktop chip volume of sales, year over year, and an 11% rise in average selling prices. But sales of mobile processors plunged 26% from the prior-year period, though the average selling price rose by 14%.
- In February, the company will reveal a broader overview of its strategy and technology roadmap to investors, who are closely watching its operating margins as it invests in additional production capacity.
- For the current quarter, the company expects revenue of "approximately" $18.3 billion, and EPS "approximately" 80 cents a share, well below analysts’ estimates of $17.61 billion and 86 cents per share.
- Intel recently launched its first graphics chips and it has launched its 12th Gen Core mobile processors for PCs that are launching in the market now.
Intel (INTC.US) stock fell over 2.5% in premarket and is currently testing support at $50.30 which coincides with lower limit of the wedge formation. Should break lower occur, downward move may accelerate towards next support at $49.05 which is marked with 78.6% Fibonacci retracement of the upward wave launched in November 2020. Source: xStation5
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