Intel Stock Forecast Is Pretty Pessimistic Despite Its Plan. This Is Why.

Jun 22, 2023

Intel Stock Forecast Is Pretty Pessimistic Despite Its Plan. This Is Why.

Intel provided encouraging news about its foundry business on Wednesday as it continues to build up additional facilities to extend its bespoke chip-making service. Regardless, Intel stock forecast was not so positive, and investors sold the stock.

Intel’s (INTC) Foundry Services, which was formally launched late last year, is a capital-intensive chip manufacturing venture that competes with Taiwan Semiconductor Manufacturing Company (TSM) and Samsung Electronics (005930. Korea). The corporation has recently invested billions of dollars in constructing a semiconductor assembly and testing facility in Poland, two facilities in Germany, and another in Israel.

The issue has always been when Intel stock forecast will see the fruits of its efforts. At a Wednesday morning webinar, Chief Financial Officer David Zinsner briefed investors, stating the third-party chip manufacturing sector will play a big role in decreasing costs by $3 billion in 2023. In addition, the business plans to be the second-largest foundry next year, with more than $20 billion in manufacturing sales.

On Wednesday, Intel also announced a deal to sell a minority investment in IMS Nanofabrication, an Austria-based technology vendor that enables semiconductor manufacturing.

Nonetheless, the stock sank 6% to $32.90 on Wednesday. The S&P 500 fell 0.5%, while the Nasdaq Composite fell 1.2%. Blame the wider market. On Wednesday, Intel was not the only chipmaker stock to take a fall. Advanced Micro Devices (AMD) fell 5.7%, while Nvidia (NVDA) and Qualcomm (QCOMM) fell 1.7% and 3.4%, respectively. The Semiconductor Index (SOX) of the PHLX declined 2.7%.

The selloff follows significant gains by semiconductor makers this year. Nvidia, in particular, has gained about 200% this year and now trades at a valuation of 52.3 times estimated profits per share for the next 12 months, compared to a five-year average of 39.4 times. Despite Wednesday’s drop, Intel is up 24% this year.

Investors may be selling to lock in profits or responding to Fed Chair Jerome Powell’s announcement that further interest rate rises are on the road, which would be terrible news for growth companies.

‘”Given how far we’ve come, it may make sense to move rates higher but to do so at a more moderate pace,” Powell told lawmakers on Wednesday. “That’s really it.”

Subscribe Our Newsletter

Nuclear Stress Test Is Failed By NuCcale And It Is

Milena

Nuclear Stress Test Is Failed By NuScale And It Is a Setback for the Future of Industry.

Nuclear stress test failed as NuScale announced the cancellation of plans to construct a first-of-its-kind nuclear facility in Idaho.

Technology
Audi EV Sales Teach Us About Demand and The Used-Car Market.

Milena

Audi EV Sales Teach Us About Demand and The Used-Car Market.

The German Auto USA sold 4,438 Audi EVs in the first quarter, up from 3,247 sold in the first quarter of 2022 and up from 4,257 sold in the fourth quarter of 2022.

Companies
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Constantine

The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)
In economics, the crypto market is a kind of "gray area," i.e., a classic shadow economy, because crypto unequivocally challenges the state monopoly on money issuance.

discover
liquidity pools explained

Alexander

The Two Worlds of the Liquidity Pool: A Comparison of Forex and DeFi

Let's find out what is a liquidity pool, how does liquidity impacts brokerages, and how to choose the best liquidity pool provider.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiriesb2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    MetaTrader vs cTrader: Which Trading Platform Shall You Choose?

    MetaTrader vs cTrader: The Full Breakdown

    Сonstantine

    Will Dogecoin Reach $1? Tokenomics and Price Analysis

    Will Dogecoin Reach 1 Dollar Analysis

    Сonstantine

    How to Get a Crypto Exchange License?

    How to Get Crypto Exchange License

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.