Intel (NASDAQ: INTC) is facing declines and this is affecting the stock market. NASDAQ and Dow Jones fell a little due to the fall of 10.9% in the stocks of Intel. This is also causing an effect on the tech sector. While NASDAQ faced a decline of 0.4%, the Dow Jones Industrial Average fell by 10 points, which is less than 0.1%.
The stocks have fallen and have fetched a lower revenue and profit for the company as compared to the previous year. The Corona Virus Pandemic has brought about a difficult and challenging time for the company. Due to the loss, the company has decided to delay its next-generation 7-nanometer chips. The chips are not coming before late 2022. One rival of Intel, Advanced Micro Devices Inc. (AMD), has already released the architecture of that chip.
The geopolitical tensions which are challenging the business standards of social unrest and globalization have also contributed to bringing about a very tough time for the 52-year-old company, leading the chip-sector for so many years.
Current Statistics of Intel Corporation (NASDAQ: INTC)
- 52 Week Range: 43.63 – 69.29
- Average Volume: 35,350,193
- Market Capital: 204.505B
The shares even dropped down to a value lower than $49. The net income of Intel for the third quarter was $4.3 billion, which is a huge drop by 28% from last year when it was $5.99 billion. The income has gone down to $1.02 from $1.35 per share. As of revenue, it has also seen a fall from $19.19 billion (last year quarter) to $18.3 billion (this year quarter).
What comes next?
The problems are being sorted out and the company is trying to bring out the best of it again. The CEO of Intel, Bob Swan has made public the problems and revealed how challenging the year has been for the company, yet they are trying their best.
The losses incurred by Intel also affect the tech sector. Even the Bank of America downgraded the company due to the major fall of 10.7% – 10.9%. The fixation on the manufacturing problems at a time when the company is already facing challenges does not seem to be easy.
The company’s major rivals namely Advanced Micro Devices Inc. (NASDAQ: AMD) and Nvidia Corporation (NASDAQ: NVDA) are giving Intel tough competition because these companies seem to be progressing with Intel stuck back dealing with the losses.
As per the current situation, Intel needs to work up hard on their services and revive itself back. With the rival companies trying to take over, it is high time that Intel must try hard to gain as much profit as possible. The scenario post the Corona Virus Pandemic might help in the same if the company tends to do so. The CEO has also said that they are trying to correct the problems for the better functioning of the firm and the corrections have been made too. However, what lies ahead, is still quite speculative.