Intel Corp (NASDAQ:INTC) shares are sliding Wednesday after the company tempered its quarterly expectations during a presentation at "RSA Conference 2022."
What Happened: Intel management talked down the quarter at the event on Tuesday, citing reduced inventory levels and delays in the global reopening following extended COVID-19 lockdowns in China.
After hearing management's commentary, Citigroup put out a note saying its bear case on Intel has taken shape faster than the firm anticipated. The analysts lowered Intel estimates on expectations the chipmaker will negatively pre-announce earnings or miss its previously issued guidance.
Related Link: Citi Sees Intel's Bear Case Taking Shape Sooner Than Expected
Why It Matters: Market Rebellion co-founder Pete Najarian owns Intel stock and has additional exposure to the semiconductor space through NVIDIA Corp (NASDAQ:NVDA), he said Wednesday on CNBC's "Fast Money Halftime Report."
When he bought Nvidia shares two weeks ago, he considered selling Intel, before ultimately deciding against it. Wednesday's bearish analyst coverage still wasn't enough to get him to sell his Intel position, and here's why.
"When I look at what they have in front of them, it's all great," Najarian said of the company's expansion plans. He noted that it's rather difficult to decide whether or not the wait will be worth it.
He told CNBC that he has been able to stay afloat in the name by using options strategies.
"I've owned this stock for about five or six years," Najarian said. "I've been collecting a dividend and selling calls against it."
Still he is grappling with how long to hold onto the name after increasing his chip exposure by buying Nvidia.
"I think sooner or later, I will sell [Intel] ... but for now, I'm long both," Najarian said.
INTC Price Action: Intel has traded between $58.41 and $40.31 over a 52-week period.
The stock was down 5.27% at $41.24 at press time, according to data from Benzinga Pro.
Photo: courtesy of Intel.
