SP500 Retreats As Traders Focus On Intel’s Earnings Report
SP500 is under strong pressure amid sell-off in the tech sector, which was triggered by Intel‘s earnings report.
Intel stock is down by -31% on weak sales forecast. The company expects sales of $15 billion – $16 billion in the fourth quarter, compared to analyst forecast of $17 billion. Intel also expects earnings of $0.25 per share, compared to analyst consensus of $0.43 per share.
Intel noted that high prices for memory put significant pressure on the personal computer market. Intel’s CEO Lip-Bu Tan also noted that the company’s data center unit suffered from shortages of some materials. According to Intel, the personal computer market will remain under major pressure in 2027.
The company’s results raised worries about AI’s impact on tech businesses. AI has already hurt bottom lines of many companies, while monetization has lagged.
I’d note that tech leaders are forced to invested boatloads of money into AI regardless of their financial results as they are afraid to be left behind in the key race of the century. Not surprisingly, the market is worried that these huge investments could cause financial problems for many com...