Please ensure Javascript is enabled for purposes of website accessibility

It's Business as Usual at Intel Despite the Coronavirus

By Donna Fuscaldo - Mar 3, 2020 at 2:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Intel's CFO said at a Morgan Stanley conference that the coronavirus outbreak isn't hurting the company's business.

The novel coronavirus outbreak has caused business disruptions, earnings warnings and sent the stock markets into a tizzy, but at Intel (INTC -2.86%) it's business as usual. 

That's according to the semiconductor manufacturer's Chief Financial Officer George Davis, who was quoted as saying during a Morgan Stanley investor conference this week that, even amid the coronavirus outbreak, Intel has been able "to operate on a relatively normal basis." Calling the disruptions Intel is seeing "modest," the executive did note that the tech company entered the quarter with shortages and wouldn't have been able to meet the demand near the end of the year with or without coronavirus. 

an illustration shows virus cells floating on a blue background with the word "coronavirus" centered in the image

Image source: Getty Images.

Intel's rather benign assessment of the impact coronavirus is having on its business flies in the face of Apple (AAPL 1.62%), which earlier this month issued a warning for the current fiscal second quarter because of a slowdown in production as plants in China were idled and stores across the country were shuttered. Microsoft (MSFT 1.07%) also warned that the coronavirus (which causes the disease COVID-19) would prevent the company from reaching its targets in its More Personal Computing unit which includes Microsoft's Windows operating system, its devices, PC accessories, and gaming hardware and services. 

Although Intel said business isn't being impacted, Davis did acknowledge some of its customers are beginning to feel the effects as they deal with interruptions in the supply chain. Intel's CFO noted the chipmaker has a NAND manufacturing plant in Dalian, China, a test and packaging plant in Chengdu and design facilities located in Shanghai and Beijing. 

Recently shares of Intel were inching higher, but the stock is still down so far in 2020. Since Feb. 19, the stock had plummeted nearly 18%. It recouped some of the losses this week, but it is still 3% lower since the start of this year. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Intel Corporation Stock Quote
Intel Corporation
INTC
$36.34 (-2.86%) $-1.07
Apple Inc. Stock Quote
Apple Inc.
AAPL
$138.93 (1.62%) $2.21
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$259.58 (1.07%) $2.75

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.