Chip heavyweights: IBM alienates investors and Intel is cashing in



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 The  shares of the two tech veterans IBM and Intel suffered high price losses on Wall Street on Friday – but for various reasons. While IBM scared investors off with weak quarterly figures, they took profits at Intel after strong business results and high price premiums.

IBM’s shares plummeted almost eleven percent to their lowest level in two months. ©

 The  computer dinosaur suffered surprisingly significant business losses at the end of the year. Net profit collapsed by two thirds due to high spending on corporate restructuring. ©

 The  lucrative cloud business with IT services and storage space on the Internet has recently grown much more slowly than in the previous quarter.


 The  corporate restructuring at IBM will continue in the new year, wrote analyst David Vogt from UBS. ©

 The  company has left problems behind, but new ones ahead of it. ©

 The  results in the cloud business fell well short of expectations. That limits the potential for the share price. Looking ahead, Vogt anticipates continued sluggish demand for cloud services.

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At the chip giant Intel, however, experts were full of praise for the quarterly report. “©

 The  fourth quarter of 2020 was very strong,” said Stacy Rasgon from the Bernstein investment company. At 20 billion US dollars, sales have clearly left the market expectation of 17.5 billion dollars behind. ©

 The  group benefited from the high demand for notebooks. ©

 The  forecasts for the current first quarter of 2021 are also optimistic for this reason.

Despite such warm words, Intel shares fell victim to their latest strength on Friday: from the low just a month ago to the daily high on Thursday evening, the price jumped more than 40 percent in a broad sector rally for chip stocks. After this rally, investors now cashed in, the price slumped 8.5 percent on Friday.

onvista / dpa-AFX

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Chip heavyweights IBM alienates investors Intel cashing