Intel reported a disappointing Q2 with an 85% earnings crash and a 1% decline in sales. The company announced $10 billion in cuts, including a 15% reduction in its workforce and the suspension of its dividend.
The weak Q3 forecast and the challenges of competing with rivals like AMD and Qualcomm's Snapdragon X Elite PC chip contributed to the stock plunging 19% after-hours and 5.5% in the regular session. Intel's CEO, Pat Gelsinger, plans to focus on deleveraging and capital investments over shareholder dividends.
The company aims to regain market share by building AI chips and third-party foundry businesses. However, Intel's manufacturing upgrade and build-out program have put a strain on profits.
Despite the difficulties, Gelsinger remains confident in Intel's ability to catch up with and surpass its competitors in chip manufacturing and AI technologies.
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