Intel Stock Plummets After Dismal Earnings and Restructuring Announcement

Intel`s stock plummeted over 26% on Friday, marking one of its worst trading days in decades. This drastic drop followed a disappointing second-quarter earnings report, where the company projected lower-than-expected third-quarter earnings and revealed plans to cut 15% of its workforce, suspend dividend payments, and undergo restructuring. Intel`s projected revenue for the third quarter fell short of analyst predictions, with earnings per share significantly below expectations. The company`s struggles are attributed to challenges in regaining PC chip market share from AMD and competing in the chip manufacturing sector against Taiwan Semiconductor. While investing heavily in factories and data center technology, Intel faces stiff competition in the AI chip market from Nvidia and a new threat in the PC space from Qualcomm`s energy-efficient Snapdragon chips. Despite these challenges, Intel`s largest business segment remains its Client segment, encompassing chip sales for computers.