Intel Stock Plummets After Disastrous Earnings Report, Dividend Suspension, and Restructuring Announcement

Intel`s stock plummeted over 26% on Friday, marking one of its worst trading days in decades, following a disappointing second-quarter earnings report. The company fell short of Wall Street`s expectations for both revenue and earnings per share, leading them to announce a 15% workforce reduction, a dividend suspension, and a restructuring plan. This drastic measure comes as Intel attempts to navigate a challenging market where it faces stiff competition from AMD in PC chips and Taiwan Semiconductor in manufacturing. Despite efforts to capitalize on the demand for AI-powered chips, their Data Center and AI segment also fell short of expectations. Adding to their woes, Intel`s largest business segment, Client computing, is under pressure from Qualcomm`s new energy-efficient PC chip. While Intel plans to counter Qualcomm`s offering later this year, the company faces an uphill battle to regain its footing in the tech industry.