The stock of Intel falls as a result of disappointing earnings and loss estimates.

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After the publication of fourth-quarter earnings that missed analysts expectations, Intel (NASDAQ:INTC) stock dropped 9% in extended trading on Thursday.

Analysts had predicted earnings of 20 cents per share and revenue of $14.45 billion, but the company actually reported earnings of 10 cents per share and $14.04 billion, respectively.

The most recent quarter saw a 32% decline in Intel's revenue year over year. Sales have decreased for the fourth consecutive quarter as the personal computer market slows down after seeing a boom during the pandemic.

Intel predicted an adjusted net loss of 15 cents per share on revenue between $10.5 billion and $11.5 billion for the first quarter of 2023. Intel cited "uncertainty in the current climate" as the reason it chose not to offer a full-year prediction. "Persistent economic headwinds" will affect Intel.

The Client Computing Group at Intel, which comprises PC chips, reported fourth-quarter revenue of $6.63 billion in 2022, a decrease of 36% from the forecasted $7.68 billion. According to Intel, the consumer and educational markets had the biggest declines in demand, and customers also decreased inventory.

Compared to a profit of $4.62 billion in the prior quarter, the corporation reported a net loss of $664 million. 

The sales for the Data Center and AI division, which includes server chips, memory, and field-programmable gate arrays, was $4.30 billion, a 33% decrease. The current state of the economy is "putting a short-term pressure on our factory network."

The company's plants were underutilised, which reduced Intel's gross margin by 2.2% in the fourth quarter.