Intel shares closed down 6.4 percent Friday, a day after the company reported dismal quarterly and annual results . The chip maker’s tepid quarterly results, with a 32% year-over-year decline in revenue and a net loss of $664 million for the fourth quarter of 2022, took analysts and investors alike by surprise.

Intel’s problems, including chip glut and weakening factory demand affecting its margins, are unlikely to abate anytime soon as the company expects an adjusted net loss of 15 cents per share in the coming quarter. Analysts were not stingy with words , lowering price targets almost across the board.
“No words can describe or explain Intel’s historic collapse when management tries to blame its worst-ever PC and macro/China/enterprise inventory dynamics for a sales decline of more than 20% quarter over quarter,” Rosenblatt analyst Hans Mosesmann wrote. in a note Thursday night. Rosenblatt maintained its sales rating for Intel and lowered its target price from $20 to $17.

It’s a major test for Intel CEO Pat Gelsinger, who takes the top job at the 54-year-old chipmaker in 2021. Factors beyond Intel’s control have contributed to both inventory and production problems, and the slowing PC market has put pressure on Intel’s margins and Gelsinger said he’s forcing retailers to “fix” their inventory in a call with analysts.

“While we know this dynamic is going to change, it’s hard to predict when that will happen,” the CEO told analysts. Intel stock is down more than 46% from its 52-week high.