Intel Stock Down 36% Despite AI Boom: Intel Plans Layoffs to Cut Costs
Despite the surge in AI-related stocks, Intel (NASDAQ:INTC) has seen its stock plummet by 36% this year due to fierce competition in the semiconductor industry. In a bid to streamline operations and reduce expenses, Intel is set to lay off thousands of employees, a move that could be announced alongside its second-quarter earnings report on August 1.
Intel, which has received substantial subsidies from governments, is facing tough competition from rivals like Advanced Micro Devices (NASDAQ:AMD). The planned layoffs follow a workforce reduction in 2023, with Intel aiming to slash costs by up to $10 billion by 2025.
However, Intel is not backing down, as it recently hired Dr. Naga Chandrasekaran from Micron as its new Chief Global Operations Officer. Wall Street analysts are expecting Intel’s revenue to grow marginally in the upcoming quarter, while earnings per share are projected to show a loss compared to the previous year.
In conclusion, Intel’s struggles and restructuring efforts reflect the intense competition in the semiconductor industry and the challenges faced by traditional players like Intel in keeping up with innovative rivals. Investors should closely monitor Intel’s performance and strategic moves to make informed decisions about their investments in the tech sector.