Intel leads chip stocks lower as investors worry about spending plans
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Semiconductor stocks largely sold off to end the week, with Intel (NASDAQ:INTC) leading the way down as investors digested the chip giant's investor day and worries over escalating tensions between Russia and Ukraine continued to hover over the broader market.
At its investor day, Pat Gelsinger-led Intel said it expects profit margins to decline in 2022 and hold steady due to heavy investments, before climbing once again in 2025.
Gross margins are likely to decline to 52% in 2022 on an adjusted basis, while being between 51% and 53% in 2023 and 2024. In the following years, it's expected to climb back to a range of 54% to 58%. 
CEO Pat Gelsinger said: "The continued proliferation of technology is driving sustained, long-term demand for semiconductors, creating a $1 trillion market opportunity by 2030. Our goals are ambitious, but I'm confident we have the right strategy and right team to achieve them and to deliver long-term value for our shareholders."
In addition, Intel (INTC) said revenue would rise 1.7% to $76 billion in 2022, grow in mid-to-high single-digit percentage point growth in 2023 and 2024, before 10% to 12% gains in 2025 and 2026.
Gelsinger also said that adjusted free cash flow is expected to be negative $1 billion to $2 billion as the company ramps its investments to accelerate long-term growth.
Intel (INTC) shares fell more than 6% to $44.55 on heavier than normal volume on Friday.
Advanced Micro Devices (NASDAQ:AMD), which competes with Intel in CPU and server space, saw its shares fall less than 1%. 
Nvidia (NASDAQ:NVDA) shares fell sharply for a second day, declining nearly 5% as investors digested fourth-quarter earnings and first-quarter guidance from earlier this week. 
Other chipmakers fell in sympathy, with Marvell Technologies (NASDAQ:MRVL)
down nearly 2%, while Nvidia competitor Qualcomm (NASDAQ:QCOM)
fell slightly more than 1%.
Separately at its investor day, Intel (INTC) said that it would be interested in participating if a consortium emerges to own the British semiconductor and software design company Arm.