Jan 27 (Reuters) - Intel Corp (INTC.O) saw about $8 billion wiped off its market value on Friday after the U.S. chipmaker stumped Wall Street with dis

Intel's 'historic collapse' erases $8 billion from market value

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2023-01-27 22:00:18

Jan 27 (Reuters) - Intel Corp (INTC.O) saw about $8 billion wiped off its market value on Friday after the U.S. chipmaker stumped Wall Street with dismal earnings projections, fanning fears around a slump in the personal-computer market.

The company predicted a surprise loss for the first quarter and its revenue forecast was $3 billion below estimates as it also struggled with slowing growth in the data center business.

Intel shares closed 6.4% lower, while rival Advanced Micro Devices (AMD.O) and Nvidia (NVDA.O) ended the session up 0.3% and 2.8%, respectively. Intel supplier KLA Corp (KLAC.O) settled 6.9% lower after its dismal forecast.

"No words can portray or explain the historic collapse of Intel," said Rosenblatt Securities' Hans Mosesmann, who was among the 21 analysts to cut their price targets on the stock.

The poor outlook underscored the challenges facing Chief Executive Pat Gelsinger as he tries to reestablish Intel's dominance of the sector by expanding contract manufacturing and building new factories in the United States and Europe.