Intel stock moves lower after disappointing earnings miss, analyst downgrades

Shares of Intel moved to the downside after the company posted a disappointing earnings report and saw its stock downgraded.

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SEANA SMITH: But we got to talk about Intel and what's going on with chips today because it is all about this story, a massive disappointment, a big miss on earnings and weak guidance. That is pulling the stock down substantially today. You can see losses off the lows of the day, but still off just around 7%. Wall Street has been weighing in all day on the results, on the guidance.

Mizuho's note on the chip maker really setting the scene for just how bad this report is writing, quote, "Bulls will say Q1 is so bad, it flushes out all PC inventory. But there is zero reason for any style of investor to buy or own Intel in the first quarter. It defines underperform." And Dave, when you're looking at these results, clearly, Intel in an uphill battle, industry downturn. They have a costly turnaround plan, stiffer competition. Certainly a tough road ahead here for the chip maker.

DAVE BRIGGS: Yeah, it's a turnaround plan that is going to take several years, as we've discussed with several analysts here on the program. And the road ahead, I always point to this Chips Act, which was supposed to be a catalyst, they're down 30% since the passage of the CHIPS Act. And some of the criticism was that they were the biggest beneficiary, unfortunately, that they were unfairly favored by the CHIPS Act. Again, down 30%, but they haven't received any government money yet, so still could be.

My note comes courtesy of Bernstein, who has a gem today quote. "We have written worst earnings report in our history of covering this company on more than one occasion over the last couple of years, but this time we really mean it. The magnitude of its deterioration is stunning." That came with a downgrade as well to underperform and cutting the price target to 20 bucks.

There was some question ahead of their earnings report, would they be a bellwether for the chip sector as a whole? It is clear this is really an Intel problem, not a chips problem. Most of the majors are flat, slightly up, and then there's Nvidia, who had a very good day. And they are, of course, the one who stands to benefit from ChatGPT the most. So things look fairly optimistic, at least for some of those names, Jared.

JARED BLIKRE: Yeah, let's just take a look at the Wi-Fi Interactive for two seconds here, looking at the semiconductor stocks. As you said, Nvidia, the major that we think about in chip stocks, that's up 40% this year alone. Intel over here, that's up about 6.2%. And then you just compare that to the last five years, definitely sunk to new lows there. And here's a max chart. A lot of people forget this was a high flyer during the dot com boom. Guess what? That's 1998, '99, 2000. Bam. And while it's still in the, let's call it the midpoint of its range, have to see how this turnaround story turns around.