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Intel's Second Quarter Earnings and Layoff Plans Amidst ...
2024-08-02 09:00:08
Business
Companies
Economy

Intel's Second Quarter Earnings and Layoff Plans Amidst Competitor's Success

Image courtesy of : AFP (JUSTIN SULLIVAN)

Intel is preparing to announce its second-quarter earnings, revealing a revenue of $12.9B and EPS of $0.10 while facing tough competition from AMD and Qualcomm in the PC market. The company's Data Center and AI revenue stands at $3B, with plans to launch a new chip to rival Qualcomm's Snapdragon X Elite.

Alongside this news, Intel is set to lay off thousands of employees as part of a $10B cost-cutting initiative under CEO Pat Gelsinger. These actions come as Intel struggles with a 1% revenue decline and challenges in AI PC products, contrasting with Nvidia's success in the CPU market.

On the other side, Qualcomm has reported strong Q3 results, exceeding Wall Street expectations with an 11% revenue increase to $9.39 billion and an adjusted EPS of $2.33. The company's stock rose significantly, reflecting the successful execution of Qualcomm's growth strategy and the introduction of the Snapdragon X Series for PCs, signaling a shift towards becoming a leading intelligent computing company.

Related news on that topic:

Intel Faces Challenges as Stock Plunges on Q2 Miss

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.

Intel Announces Massive Job Cuts as it Struggles to Keep Pace ... with Competitors

Intel, once the market leader in chip manufacturing, is facing challenges as it falls behind competitors like Nvidia and AMD in the AI chip market. To address these issues, the company is undergoing its largest restructuring in 40 years, which includes cutting 15% of its workforce and reducing capital expenditure by $5 billion in 2025. Intel's quarterly earnings have missed estimates, leading to a 21% stock crash. The company plans to focus on improving manufacturing, streamlining products, and attracting external customers. Despite the setbacks, CEO Pat Gelsinger is committed to regaining a leadership position in the industry. However, the company's revenue forecast remains below expectations. Intel's struggles can be attributed to declining demand for traditional server processors and losing its Huawei license. It is also facing competition from rivals like Nvidia and AMD, who are thriving in the AI chip market. Intel's new structure aims to address high costs, low margins, and missed opportunities in the AI boom. The company is also facing challenges in its plan to build a chip factory in Magdeburg, Germany. Despite these difficulties, Intel remains optimistic about the future and is determined to maintain a sustainable semiconductor supply chain and continue its investments in research and development.

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Yahoo Finance
1. August 2024 um 22:33

Qualcomm Stock Rises On June-Quarter Beat | Investor's Business Daily

Finance
Technology
Economy
Qualcomm, a wireless-chip leader, reported strong Q3 results, beating Wall Street's targets. Revenue rose 11% to $9.39 billion, with adjusted EPS of $2.33. The company expects Q4 earnings of $2.55 per share on $9.9 billion in sales. Qualcomm's chip business accounted for 86% of revenue, with handsets contributing 73% and automotive up 87% to $811 million, but IoT down 8% to $1.4 billion. The technology licensing business contributed the remaining sales. Qualcomm stock jumped 8.4% to $180.95 du..
Yahoo Finance
1. August 2024 um 18:12

Intel to report second quarter earnings amid reports of layoffs

Economy
Technology
Finance
Intel Q2 earnings: EPS $0.10, revenue $12.9B; facing PC competition from AMD, Qualcomm; Data Center and AI revenue $3B; launching answer to Qualcomm's Snapdragon X Elite chip; plans to lay off thousands; spending billions on factories, facilities.
AFP
2. August 2024 um 05:14

Chip manufacturer Intel announces significant job cuts

Economy
Technology
Finance
Intel, a leading US chip manufacturer, is announcing a massive job cut of over 15%. The company recorded a loss of $1.6 billion in the 2nd quarter and will not pay a dividend by the end of the year.
Yahoo Finance
1. August 2024 um 23:05

Intel to lay off 15,000 employees

Economy
Technology
Finance
Intel to lay off 15,000 employees, over 15% of staff, in $10B cost-cutting plan under CEO Pat Gelsinger as company struggles with 1% revenue decline, gross margin headwinds in AI PC products, failure to capitalize on AI boom unlike rivals like Nvidia in CPU chips, suspension of shareholder dividend, enhanced retirement offering for eligible employees, and $24B revenue decline between 2020-2023 despite 10% workforce growth.
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