Intel Is Making a Catastrophic Mistake
Intel (NASDAQ: INTC) might have just had one of the worst years in the history of blue chip stocks.
The Dow Jones Industrial Average component and one of the biggest semiconductor companies in the world finished 2022 with a 20% decline in revenue to $63.1 billion. During the year it lost $9.4 billion in free cash flow and the stock price fell nearly 50%. Even worse, Intel expects to report a loss in the first quarter of 2023 and is projecting revenue will fall 40%, year over year.
The chip maker isn't entirely to blame for the weak numbers. An inventory glut in the semiconductor industry, especially in PC chips, hammered peers like Advanced Micro Devices and Micron Technology as well, and a decline in PC demand is also weighing on performance. The chip sector is known for being cyclical, and prices can swing wildly.
Source Fool.com
