From Nasdaq: 2024-08-03 05:35:00

Semiconductor giant Intel was disappointed as demand in core markets failed to rebound in the second quarter, missing analyst expectations. Shares dropped nearly 30% after Intel reported an unexpectedly large loss and guided for a revenue decline in Q3. The company is taking drastic measures to cut costs, reduce head count, and suspend dividends to improve cash flow.

Key points investors need to know: PC market recovery has been slow with customer inventories still high. Intel lags behind AMD in performance but is introducing new server chip families aimed at cloud workloads and AI accelerators. Despite layoffs, Intel remains on track with its foundry strategy to generate external revenue from advanced packaging services.

Intel’s turnaround is challenging as demand for core products remains low. The company is revamping its product lineup through 2025, introducing new PC and server chips. The path forward is volatile but promising with the potential for growth in the coming years. Intel stock is not for the faint of heart, but the overall strategy looks positive.

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Read more at Nasdaq: 3 Things to Know About Intel’s Disastrous Report