Intel's stockpile after first-quarter results
Intel (INTC) announced first-quarter results after the market closed on April 25, and updates from its new CEO, Bob Swan, failed investors.
Intel shares declined 7% after-trade after falling 1.89% on April 25.
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2019 Revenue Guide
Intel shares fell as the company lowered the $ 2.5 billion revenue guide to $ 69 billion, which is a decrease of 3.5% annually (year-on-year). Intel reported 12.7% annual growth in 2018.
At its first-quarter earnings acquisition, Swan stated that after conversations with customers and partners, he had learned that general market developments were slow. He explained that data center customers still digested the excess inventory and capacity they built in the first half of 2018, NAND (negative AND) memory prices remained challenging, and slow demand in China (FXI) slowed IT spending. In light of these challenges, Intel's customers have created hope that demand will improve in the second half.
The semiconductor demand outlook presented by Intel has affected the stocks of its peers. Intel stated that data center spending would remain weak in the first half, especially in China. This prediction sent data centers rivals NVIDIA (NVDA) and Advanced Micro Devices (AMD) tumbling, respectively, 2% and 1.4% ex-post on April 25, respectively. Xilinx (XLNX) stocks had already fallen 17% in April 25 trading, as its fiscal 2019 fourth-quarter earnings performance had missed analysts' estimates.
According to Intel, NAND memory prices remain challenging. This challenge is reflected in Micron's (MU) tax revenue for the second quarter, and Samsung's revised first-quarter guidance. Intel's update sent down the shares of NAND chip manufacturers Micron and Western Digital (WDC) down 2.7% and 1.8%, respectively, in the downstream trade on April 25.
Total Demand Weakness
Intel's outlook showed the general demand weakness in the semiconductor industry sending Texas Instruments (TXN) and VanEck Vectors Semiconductor ETF (SMH), respectively, by 1.4% and 2.3%, respectively, on April 25, respectively. .