Intel has forecast one of the worst quarters in its history, seeing over A$11 billion wiped off its market value in a single day as investors flee.
Intel shares plunged 10 per cent over the weekend, after warning its quarterly revenue could fall to its lowest level since 2010.
Shares in the company have fallen over 42 per cent in the past twelve months, as PC sales fell to historical low.
Intel has forecast first-quarter sales of between A$14.7 billion and A$16.2 billion, a far way from Wall Street estimates of $19.6 billion.
Rather than the Wall Street predictions of a 35c profit for the quarter, Intel expects to lose 21.1c during the period.
The company’s gross margin will be 39 per cent for the quarter, down from 53.1 per cent during the first quarter of 2021, and over 10 per cent less than nearest rival AMD.
PC shipments are expected to decline to as few as 260 million units during 2023, down from 350 million in 2021. The consumer and education markets were hit hard, and data centre sales are down by a third.
In addition, the server market will also take a hit in the first half of the year, according to Intel.
This follows a 32 per cent year-over-year decline in revenue, and a net loss of A$906 million for the December quarter.
“I’d like to remind everyone that we’re on a multiyear journey,” Intel’s CEO Pat Gelsinger said during a conference call on Friday, while noting “volatility across all markets” during the coming year.
“While we know this dynamic will reverse, predicting when is difficult,” he added.
Intel had previously announced cost cutting moves that are expected to save A$4.22 billion in 2023, and up to A$14 billion by 2025.
Meanwhile, Gelsinger has increase spend in US factories, part of the company’s move away from Chinese reliance.
