Intel (NASDAQ:INTC) The stock fell again in Friday trading. According to data from S&P Global Market Intelligence, the company’s share price ended the day’s trading down 3.8 percent.
The stock has fallen sharply of late and its valuation took another hit today after the semiconductor specialist announced it would postpone its Intel Innovation conference. The company’s share price has fallen 42% in the past month and 61% year-to-date.
Intel delivers more bad news
Reports first circulated on Friday that the Intel Innovation Conference scheduled for next month would be canceled. The company later confirmed that it would postpone the event until 2025. In the meantime, Intel has announced that it will shift its presentation efforts to other smaller and more focused events.
The news of the postponement of the Intel Innovation event follows the disappointing second-quarter results the company released last week and the announcement that it will undertake drastic cost-cutting measures. As part of a drastic restructuring, the semiconductor maker will lay off around 15% of its global workforce. The postponement of the high-profile conference is another sign that Intel is making an effort to cut its expenses and plan for a lengthy turnaround process.
What’s next for Intel?
Intel’s latest quarterly earnings report, guidance and restructuring announcements have radically changed the perception of the company. With the rise of artificial intelligence (AI) helping some major chip industry players post strong performance and valuation gains, investors had hoped the company was about to benefit from the associated tailwinds. The company’s announcements last week largely dashed hopes that the company was positioned to score many near-term wins in the AI space.
Management’s comments and forecasts suggest that demand for AI PCs is unlikely to be a positive earnings driver this year, and the company’s contract manufacturing business is further from being a profit driver than previously expected. Intel stock has been pushed to a decade-low, but the company is faltering at a time when competitive pressures are intense and increasing.
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Keith Noonan does not own any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
Why Intel stock fell again today was originally published by The Motley Fool
