plans to reduce its costs by $10 billion. This cut in costs would mean reducing its workforce by 15% and postponing dividend payments.
In a statement, representatives declared that Intel stock forecast anticipated Q3 income of approximately $12.5 billion to $13.5 billion, much above analysts’ Intel stock forecast of $14.3 billion. Intel stock dropped more than 20% in pre-market trading on Friday after the report.
The company finds itself in the middle of a huge turnaround struggle, as Intel tries to recover the Intel market cap lost to the competitor AMD while running to grow its AI chip and third-party foundry businesses. Everything follows the PC market's early stages of restoration after eight successive quarters of drops caused by the booming expansion the industry accomplished at the start of the COVID-19 epidemic disease.
In the Intel stock statement, it reported earnings per share of $0.02 on a gain of $12.8 billion. Analysts were hoping for an EPS of $0.010 and an income of $12.9 billion. Intel stock shares a known EPS of $0.13 on revenue of $12.9 billion in the same quarter of 2023, according to analyst evaluations assembled by Bloomberg.
The chip provider is also anticipated to lay off approximately 16.000 employees in the coming days, as it tries to cut those costs and keep investing huge amounts of capital in plants and other capabilities from all around the world, in an effort to recover Intel market cap share of the chip production field, controlled by Taiwan Semiconductor.
The Intel executive director, Pat Gelsinger, claimed that despite a massive spending plan to bring back Intel's industry fame and Intel earnings, it is fighting to upgrade Intel’s products and technology rapidly enough to preserve its public.
Intel’s Data Center and AI division carried in intc stock $3.05 billion in the quarter, under forecasts of $3.07 billion. The Data Center and AI section allows Intel earnings to flourish its Intc stokes income thanks to the huge request for CPUs and GPUs to power AI applications. Intc stocks are off 38% year to date against AMD, which dropped just 3.7%. Nvidia’s shares, the other competitor, are up to 127%.
However, Intel market cap is confronting a serious danger in the PC field from an unexpected origin: Qualcomm. The company is better known for producing smartphones and tablet chips, but it launched its new Snapdragon X Elite PC chip as a component of Microsoft’s brand new Surface Laptop and Surface Pro in May.
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