Intel’s stock took a nosedive, plummeting over 30% within hours of the company releasing its Q2 2024 earnings report. This dramatic drop wiped away tens of billions of dollars in market capitalization, highlighting the severity of the situation. The news came on the heels of Intel’s announcement to lay off over 15% of its global workforce, resulting in 17,500 job losses before the year’s end. The company’s Q3 2024 revenue forecast fell short of market expectations, adding to the woes. Adding insult to injury, Intel is losing CPU market share to rival AMD across various segments, including consumer (Ryzen), workstation (Threadripper), and server/data center (EPYC). The stock’s decline has been particularly steep, dropping over 31% in just two days, from $31 to $21, erasing over $30 billion in market capitalization. In response to these challenges, Intel CEO Pat Gelsinger emphasized the need for a leaner structure, stating, “I need less people at headquarters, more people in the field, supporting customers. Our objective is to… pay a competitive dividend over time, but right now, focusing on the balance sheet, deleveraging.” This recent downturn underscores the significant challenges facing Intel, as the company grapples with market share losses, declining revenue, and a need to restructure its operations.
Intel Stock Plunges Over 30% After Layoff Announcement and Bleak Q2 Earnings
