Intel Bulls Are Becoming an Endangered Species
The chipmaker’s earnings didn’t dazzle and it still has big issues with its core business. Investors can’t wait forever.
Intel investors are losing patience after setbacks and less-than-stellar results.
Photographer: Aaron M. Sprecher/Bloomberg
Intel Corp.’s last remaining bulls are stampeding out the door.
Late Thursday, the chipmaker posted slightly better-than-expected third-quarter results, reporting earnings per share of $1.11 while generating $18.3 billion in sales for the quarter, compared to estimates of $1.10 and $18.2 billion, respectively. That wasn’t good enough for investors, who were likely looking for a much bigger win. Many analysts had been expecting the shift to remote working during the pandemic would results in stronger PC chip sales and increased demand for internet services for Intel; that didn’t happen. And Intel’s data-center segment that serves corporations and cloud-computing vendors came in about $300 million short of consensus. Intel shares tumbled some 10% in after-market trading.