Remember those investors who thought Intel was the next big thing back in the late ‘90s and bought the tech giant’s stocks? Well, they’ll not be so thrilled to know that, more than 25 years later, their stock is trading at less than what they paid for it! following Intel’s not-so-great earnings call, it’s a real nostalgia trip for those long-term holders.
, Intel CEO Pat Gelsinger announced a 1% decline in revenue compared to the same period last year and adjusted third-quarter forecasts downward by $1 billion. Intel’s chip manufacturing division has particularly struggled, incurring $7 billion in losses throughout 2023, compounded by a 31% revenue decrease from 2022.
The financial setbacks have prompted Intel to undertake significant cost-cutting measures, including a workforce reduction of over 15%, affecting more than 15,000 positions. This initiative is part of a $10 billion savings plan aimed at 2025, as Intel seeks to navigate economic challenges and realign its operations.
Despite these efforts, there are concerns about whether Intel can regain its status as an industry leader, especially in the face of intense competition from rival chipmakers Nvidia and AMD. While these competitors may benefit from Intel’s struggles, the overall health of the tech industry relies on Intel’s ability to remain a strong and innovative force. A market dominated by a single player has historically led to stagnation, as evidenced by the state of an .
