Pat Gelsinger, CEO Intel, speaking on CNBC's Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024.Intel executives are working with multiple advisors to formulate options to address its flagging business, according to a person with knowledge of the matter.Those advisors, which include Morgan Stanley and other bankers, will likely present Intel's directors with options at an upcoming board meeting in September, said the person, who requested anonymity to discuss confidential matters. ...

Core Viewpoint - Intel is facing significant challenges following a disappointing earnings report, leading to a substantial decline in stock price and investor skepticism, but the CEO expresses optimism about future products and strategies [1][2]. Group 1: Financial Performance - Intel's stock price dropped 26% after the latest quarterly earnings report, marking its worst day on Wall Street in over 50 years, and the shares are down 59% year-to-date, trading near their lowest levels in over a decade [1]. - In the latest quarter, Intel reported a net loss of $1.61 billion, a stark contrast to the net income of $1.48 billion from the same period last year, with revenue missing estimates [3]. Group 2: Strategic Initiatives - The company is investing billions in building out its chip fabrication business while losing market share in its core PC and data center segments, and it is struggling to make progress in artificial intelligence [2]. - Intel plans to launch a new product, Lunar Lake, which is touted as "the most compelling AI PC product ever," indicating a focus on innovation in the AI space [2]. Group 3: Corporate Governance and Investor Relations - Intel has engaged advisors, including Morgan Stanley, to help manage scrutiny from activist investors, although the CEO did not comment on this issue or the recent departure of board member Lip-Bu Tan [3]. - The company announced layoffs of 15,000 employees and is exploring cuts in its portfolio, with the CEO believing these efforts will yield positive results [3].

Summary of Intel Corporation's Conference Call Company Overview - **Company**: Intel Corporation (NASDAQ: INTC) - **Event**: Deutsche Bank's 2024 Technology Conference - **Date**: August 29, 2024 - **Participants**: Patrick Gelsinger (CEO), Ross Seymore (Deutsche Bank) Key Points Industry and Market Dynamics - The semiconductor industry is experiencing challenges, with cyclical businesses like automotive and FPGA not recovering as quickly as anticipated [10][12] - The PC market has shown weaker sell-through than expected, leading to inventory build-up among OEMs [11][12] - Geopolitical factors, particularly regarding China, have also contributed to a slower recovery than expected [12] Financial Performance and Guidance - Intel's Q3 guidance was adjusted to address inventory issues more aggressively, reflecting a cautious outlook [11] - Gross margins have been negatively impacted due to high costs associated with new fabs and early-stage production [16][17] - The company aims to return to gross margins in the 40s and eventually the 60s, with a focus on improving cost structures and operational efficiency [18][52] Strategic Transformation - Intel is in the second phase of its transformation, focusing on efficiency and cost reduction after rebuilding its product and process leadership [3][6] - The company has initiated a clean sheet effort to achieve best-in-class operational metrics, including a reduction of 15,000 positions to streamline operations [8][22] - The IDM 2.0 strategy is being emphasized, with a focus on both foundry and fabless operations [8][26] Product Development and Technology - Intel has made significant progress in its product development, with the launch of Panther Lake and Clearwater Forest expected to enhance competitiveness [4][29] - The company has achieved a defect density below 0.4, indicating improved manufacturing processes [4][29] - Advanced packaging has seen a tripling of deal pipeline, highlighting its importance in the foundry strategy [5][34] Foundry Business and Market Position - Intel's foundry business is gaining traction, with a focus on advanced packaging and a growing number of active deals [34][35] - The company is optimistic about achieving $15 billion in long-term deal value by the end of the decade, despite challenges in the foundry journey [37] AI and Infrastructure Strategy - Intel is positioning itself in the AI infrastructure space, focusing on CPU and GPU integration for enterprise applications [39][41] - The company has a strong market share in AI workloads on Xeon processors, which is expected to grow as new products are launched [42][43] Future Outlook - Intel is committed to achieving its financial targets, including breakeven in the foundry business by 2027, while adjusting its growth expectations based on current market conditions [45][46] - The company is focused on building a more efficient capital structure and improving operational metrics to enhance shareholder confidence [46][47] Conclusion - Intel is navigating a challenging market environment while executing a comprehensive transformation strategy aimed at improving efficiency, product competitiveness, and financial performance. The focus on advanced technologies and strategic partnerships in the foundry space positions the company for potential growth in the coming years.

Nvidia just delivered some good news for Intel and other AI stocks.Intel (INTC 3.65%) stock is climbing in Thursday's trading. The company's share price was up 4% as of 11:30 a.m. ET, according to data from S&P Global Market Intelligence.Intel stock is gaining ground thanks to the very strong results that Nvidia (NVDA -3.16%) published in its second-quarter results yesterday. But while Nvidia's Q2 report was enough to power gains for Intel and other players in the artificial intelligence (AI) space, they we ...

Is it only a matter of time before Walgreens Boots Alliance suspends its dividend as well?Dividend cuts and suspensions can often come without warning. While investors may have suspicions about whether a company will make a change to its dividend, there's no sure-fire formula for determining when that might actually happen. But there are certainly warning signs that can help investors gauge the overall risk. When Intel (INTC -2.29%) announced that it was suspending its dividend in August, it may have caught ...

Shares of Intel and Plug Power are down more than 50% this year.If you're buying shares of a beaten-down stock that's trading at multiyear lows, odds are, you're going to need to take on some significant risk. Whether it's a troubling outlook for the future, poor fundamentals, or just an outright broken business, there can be many reasons for a stock to go on a steep decline. The bearishness can be contagious and result in a quick free fall for some stocks.Two particularly concerning stocks this year are In ...

"We continue to add to our already comprehensive Data Center Building Block solutions with these new platforms, which will offer unprecedented performance, and new advanced features," said Charles Liang, president and CEO of Supermicro. "Supermicro is ready to deliver these high-performance solutions at rack-scale with the industry's most comprehensive direct-to-chip liquid cooled, total rack integration services, and a global manufacturing capacity of up to 5,000 racks per month including 1,350 liquid cool ...

What does Nvidia's big Q2 earnings report today have to do with Intel?Intel (INTC -1.72%) stock is slipping again Wednesday. The chip company's share price was down 2.4% as of 2:40 p.m. ET, according to data from S&P Global Market Intelligence. Meanwhile, Nvidia stock was down 2.8%.While there isn't any business-specific news pushing Intel stock lower today, the company's share price is dipping in conjunction with moves for Nvidia. The artificial intelligence (AI) leader is scheduled to report second-quarte ...

PARAGUAY - 2024/08/03: In this photo illustration, the Intel Corporation logo is displayed on a ... [+] smartphone screen. (Photo Illustration by Jaque Silva/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesIntel stock (NASDAQ: INTC) has dropped 35% over the past month and is down almost 60% year-to-date. In contrast, its competitor AMD has gained around 10% this year. Currently trading at about $20, Intel’s stock is at its lowest point in over a decade. Last month’s decline ...

Core Insights - Intel's stock has declined nearly 60% since the start of 2024, with a significant single-day drop of 26% earlier this month, contrasting sharply with the performance of peers like Micron Technology, Nvidia, and Applied Materials, which have seen gains of 21%, 161%, and 25% respectively [1][2] - The company has faced challenges in maintaining its leadership in the global chip market, resulting in a drop in market share and a 34% decrease in revenue per share and a 54% decrease in earnings per share over the last twelve months compared to fiscal 2021 [2] - Despite management's turnaround plans, the resignation of a board member has raised investor concerns, although a modest recovery in revenues to $59 billion and an estimated EPS of $1.34 for FY2024 is anticipated [2] Financial Performance - Intel's stock performance has been volatile, with returns of 6% in 2021, -47% in 2022, and 95% in 2023, underperforming the S&P 500 in 2021 and 2022 [3] - The Trefis High Quality Portfolio has consistently outperformed the S&P 500, indicating that individual semiconductor stocks, including Intel, have struggled to deliver stable returns [3] Future Outlook - Intel expects revenues to remain stable in Q3 FY2024, with potential losses at the operating level, but anticipates a turnaround in Q4, which is typically a strong quarter for the company [3] - Successful implementation of cost optimization initiatives will be crucial for Intel's recovery and return to its fair value level, estimated at $30 compared to the current stock price of around $20 [2][3]