This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) shares slid more than 3% on Monday as a mix of earnings caution and competitive pressure weighed on the chipmaker.
The drop came as traders reduced exposure to technology names ahead of Intel’s quarterly report due this week. Sentiment was further dented by news that Google deepened a custom chip partnership with Broadcom, a development that could challenge Intel’s foundry growth plans.
Broader markets also turned lower after Iran indicated it would not proceed with a second round of nuclear talks with the United States. That geopolitical uncertainty added to the day’s selling across major indexes.
Intel is expected to post a loss of four cents per share on revenue of roughly $12.34 billion, both down from the prior year. The company recently launched Core Series 3 processors designed for improved AI capabilities and battery life.
Analysts have raised price targets on Intel in recent weeks while keeping ratings at neutral or hold. The company has topped earnings estimates in three of the last four quarters. Intel reports results later this week.
