Stocks of Intel tumble after brutal earnings

The shares of Intel closed down 6.4% on Friday, a day after the company reported completely dismal results for both the quarter and the full year. For the fourth quarter of 2022, both analysts and investors were surprised by the chip maker's tepid quarterly numbers, with a 32% year-over-year decline in revenue and a net loss of $664 million for the quarter.

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The company's troubles, such as a surplus of chips and weakening demand for factories, are unlikely to abate anytime soon, with the company forecasting a net loss of 15 cents per share for the quarter. Price targets were slashed by almost all analysts, who did not mince words in their forecasts.

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There is little doubt that Intel CEO Pat Gelsinger, who took over the 54-year-old chip company's top job in 2021, is facing a significant challenge. Factors outside Intel’s control have contributed to both the inventory and production issues, with a slowing PC market pressuring Intel’s margins and forcing retailers to “correct” their inventories, Gelsinger said in a call with analysts.

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There is little doubt that Intel CEO Pat Gelsinger, who took over the 54-year-old chip company's top job in 2021, is facing a significant challenge down more than 46% from its 52-week high.