Semiconductor stocks, including Intel (NASDAQ: INTC), fell on Monday as the tech giant’s chief financial officer said the semiconductor giant did not look “clean” going into the first quarter, adding that he expected results to be close to what they it was about history.
Speaking at the UBS conference, Intel (INTC) CFO David Zinsner said the company is still working with its customers, which could continue until 2023.
“Our estimate is that the distribution of products that has been happening with our customers, probably will not end at the end of this year, it will continue until next year,” said Zinsner, according to the documents. Any place out there, did not give us confidence that there would be another reason for us to do better than the weather.
Shares of Intel ( INTC ) fell more than 1% to $29.04 following the comments.
Broadcom (AVGO), Advanced Micro Devices (AMD), Nvidia (NVDA), Qualcomm (QCOM) all fell at least 1% or more in afternoon trading.
Analog Devices (NASDAQ: ADI) fell slightly to $167.83 as Citi reiterated that the analog chip vendor was the top pick in the chip industry amid continued weakness.
Analyst Christopher Danely noted that the Semiconductor Industry Association reported $44B in monthly sales in October, down 10.9% month-over-month, below seasonal trends and Citi’s estimate of $46B. Due to lower-than-expected revenue, Danely also lowered its 2022 revenue estimate and now expects 2023 sales to fall 7% year-on-year to $538.5B, mainly due to the weakness of the first half.
“We are cautious in the semis because of the production and the recession and repetition [Analog Devices] as our top choice because of our security,” Danely wrote in a letter to customers.
Mobileye (NASDAQ: MBLY) shares erased their previous gains and fell more than 1% to $31.60 as investment firm Tigress began covering the semiconductor company with a buy rating, noting its “leading position” in driver assistance systems and autonomous vehicle technology.
An expert named Ivan Feinseth noted that the global car market is expected to be under “high speed of change” due to all electric cars and driver assistance systems, or ADAS, and autonomous cars, which are supposed to promote mobility-as-a. -work with robotaxi companies.
“Mobileye’s recent IPO, opening it up to a major semiconductor company, makes it the only player to capitalize on these emerging technologies,” Feinseth wrote in a note to clients, adding that its partners, Nvidia (NVDA) and Qualcomm (QCOM) , is “scary” but not just about cars.
Late last month, investment firm Mizuho Securities said Intel ( INTC ) was seeing “more challenges in the server and PC markets,” which is expected to continue next year.