Intel stock tumbles over 10% after brutal results

Intel shares continued to descent connected Friday, falling 10% successful premarket trading, aft the company reported dismal quarterly and full-year results. The chipmaker's tepid quarterly numbers, with a 32% year-over-year gross diminution and a nett nonaccomplishment of $664 cardinal for the 4th fourth of 2022, took some analysts and investors by surprise.

Intel's troubles, which see a surfeit of chips and weakening request for factories pressing connected its margin, are improbable to abate soon, with the institution guiding to an adjusted nett nonaccomplishment of 15 cents per stock for the upcoming quarter. Analysts did not mince words, cutting terms targets astir crossed the board.

"No words tin represent oregon explicate the historical illness of Intel, with absorption attempting to blasted a worst-ever PC inventory digestion dynamic and macro/China/enterprise to an implicit 20% q/q diminution successful sales," Rosenblatt expert Hans Mosesmann wrote successful a Thursday evening note. Rosenblatt maintained its merchantability standing for Intel and lowered its terms people from $20 to $17.

Intel shares fell astir 11% earlier the unfastened Friday.

It's a important trial for Intel CEO Pat Gelsinger, who took the apical occupation astatine the 54-year-old spot institution successful 2021. Factors extracurricular of Intel's power person contributed to some the inventory and accumulation issues, with a slowing PC marketplace pressuring Intel's margins and forcing retailers to "correct" their inventories, Gelsinger said successful a telephone with analysts.

"While we cognize this dynamic volition reverse, predicting erstwhile is difficult," the CEO told analysts. Intel's banal is down implicit 42% from its 52-week high.

CNBC's Michael Bloom, Jordan Novet, and Kif Leswing contributed to this report.