Shares in chip giant Intel tumbled lower post-earnings after the company reported weaker than expected server CPU revenue and a 47% fall in government sales. Some of the key takeaways from the earnings report include:
- Third-quarter revenue of $18.33 billion - down 4% annually but slightly higher than the $18.24 billion expected.
- Earnings per share in-line with expectations.
- Fourth-quarter guidance of $17.40 billion against estimates of $17.38 billion.
Intel shares were down nearly 10% in after-hours trading, recording a loss of 18% overall this year. Most importantly for investors, however, is the weakness in the company's high growth sector 'server CPU' sales. Revenue dropped 7% annually due to a 47% fall in government sales after enjoying more than a 30% growth in the last few quarters.
Sales to cloud providers and communication providers rose 15% and 4% respectively. Intel's much-anticipated next-generation server CPU line 'Ice Lake Xeon' has been pushed back once again with volume shipments to be expected in the first quarter of 2021.
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How to trade Intel shares with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of Intel's share price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in Intel, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, #INTC, Weekly - Data range: May 11, 2014, to October 23, 2020, performed on October 23, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.
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