Intel, a major player in the semiconductor industry, experienced a significant drop in its stock price following the release of its quarterly earnings report. The company's stock plummeted by as much as 30% on Friday, marking its largest single-day decline since at least 1982.
The disappointing earnings report included a 1% decrease in quarterly revenue to $12.83 billion, falling short of analyst expectations of $12.94 billion. Additionally, Intel's forward guidance for the upcoming quarter was lower than anticipated, with the company forecasting revenue between $12.5 billion and $13.5 billion, compared to analyst estimates of $14.35 billion.
In response to these challenges, Intel announced plans to lay off over 15,000 workers by the end of the year, as part of a broader restructuring effort aimed at improving operational and capital efficiencies. The company's CEO, Pat Gelsinger, acknowledged the disappointing financial performance in the second quarter but expressed confidence in the long-term success of the company.
The impact of Intel's struggles extended beyond its own stock price, affecting global semiconductor stocks as well. Companies like Tokyo Electron and ASML saw declines in their stock prices, reflecting broader concerns about the semiconductor industry.
Despite the challenges faced by Intel, executives remain optimistic about the company's ability to adapt and thrive in the future. Gelsinger emphasized the importance of quickly implementing the restructuring plan to position the company for long-term success.
Overall, the sharp decline in Intel's stock price and the company's restructuring efforts highlight the competitive and rapidly evolving nature of the semiconductor industry. As Intel works to address its current challenges, the company will continue to navigate a complex and dynamic market environment.