Intel beat revenue expectations by $1.7 billion and achieved its best growth in more than fifteen years. The stock fell 11% anyway.
AMD had good news of its own and was down 5.5% as well. When both decline simultaneously, it is usually because money is leaving the sector.
Intel stock fell on its earnings beat
Intel reported revenue of $16.1 billion, up 25%. Analysts had expected $14.42 billion. Its data center and AI unit grew 59% to $6.3 billion. Adjusted earnings were 42 cents per share.
“Our second-quarter results represent our strongest revenue growth in more than fifteen years…” Lip Bo Tan, Intel CEO, said on the earnings call. He releases.
Chief Financial Officer Dave Zinsner went further, promising more spending on plant equipment and materials. Then the selling started. Intel is down 10.88% since the results came out.
The Relative Strength Index, a measure of momentum, is at 29.07. Low readings indicate heavy selling.
AMD also fell into adverse news
AMD had increasing momentum. It has just pledged to supply 2 gigawatts of chips to Anthropic supply dealsupported by an investment of $5 billion. AMD still lost 5.49%. The Relative Strength Index is at 40.99.
The entire sector was already weak. The SOXX chip fund is trading about 15.7% below its June high. Scott Rubner, head of equity derivatives strategy at Citadel Securities, described it as “ Rare chip signal.
The inverse Cramer effect does not scale
Cramer posted “Intel is the best” after the results. the Inverse Cramer sign He follows.
Research says otherwise. Management science He studies He found his picks jump 2.4% overnight on average. These gains then fade over the following months. The effect is stronger in small stocks that are difficult to trade.
Size is the catch. This movement averaged $77.1 million. Intel lost 10.88%.
Kramer was too Dumping technology before profits. The entire market had turned cautious that morning.
“I struggle to find reasons to buy, and I certainly have plenty of reasons to sell,” Jim Cramer said He said.
He blamed it Oil, interest rates and the Middle East. No potato chips. The yield on the 10-year Treasury note reached its highest level since January.
Monday’s opening will settle the matter.
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