With a burgeoning tech sector, AI-related stocks have been all of the rage in recent weeks. Yet, that hype hasn’t benefitted everyone. Among those left behind is Intel (INTC), whose underwhelming Q2 earnings report has driven a 19% drop for the stock as its greatest competition has thrived.
There was some concern as to how the market would respond to higher-than-expected inflation data. The Consumer Price Index (CPI) report showed the figure fell to 2.4%, marginally above expected. Yet, the Nasdaq ended the day gaining, with Nvidia (NDIA) continuing to surge toward a new all-time high mark.
Source: Reuters
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Intel Falls as Poor Earnings Report Gives Up Ground to Surging Nvidia
There is little argument against the thriving tech sector this year. Specifically, the graphic chip and AI infrastructure industry have been a major focus of investors throughout the year. As the demand continues to increase, however, developments have begun to create a larger gap between some of the most prominent companies.
Intel is among the biggest losers so far, with INTC’s Q2 earnings report fueling the stock’s 19% drop, and making way for surging competition. The company that invented the x86 processor powering some of the most powerful computers reported $12.83 billion in revenue year on year.
Yet, that outcome fell 1.1% short of analyst predictions. In a statement from Pat Gelsinger, Intel CEO, he noted the disappointment for the tech stock. Moreover, he discussed the performance taking place despite notable successes for the firm.
Source: CNBC
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“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones,” Gelsinger said. “Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformations.”
Since the Q2 earnings report, the stock has fallen nearly 20%. Currenlty it trades a the $23 level, and has struggled recently. Meanwhile, Nvidia has continued to be a clear winner this year. The company reported $30 billion in revenue, up 122% year on year.
Contrary to Intel, that figure is a 4.5% increase above expectations. Thus, it is no secret that the company is nearing its all-time high stock price. Moreover, it is on pace to challenge Apple as the most valuable company on the planet, already reaching a $3.30 trillion market cap.