Intel share price drops by over 30% following Q2 losses

Q2 losses and other factors cause Intel’s share price to tank

It hasn’t been a good week for Intel. The company’s Q2 earnings report revealed losses of $1.6 billion, and over 15,000 job losses have been announced. Furthermore, news has come to light of a potential class action lawsuit against the company over 13th/14th generation desktop CPU stability issues. As a result of this weeks news, the Intel share price has dropped by over 30% in recent days.

Now, Intel’s share price is $21.48, a far cry from its value of over $30 a few days ago. This change has wipes tens of billions of dollars off Intel’s market cap, highlighting the lack of investor confidence in the CPU giant.

Intel’s Q3 earnings expectations are lower than what many analysts expected. Intel is loosing CPU market share, with AMD being a major beneficiary of this change.

Intel is undergoing some major changes. For starters, they are investing heavily into new fabs and into improving their silicon lithography technology. These changes are expensive, but a vital for Intel’s future. The next few years for Intel will be pivotal. Based on their current share price, many are convinced that these recent Intel investments will not result in financial success.

Right now, Intel is focusing on improving its balance sheet. In time, Intel’s heavy investment into new fabs may pay off. Next year’s Panther Lake and Clearwater Forest should be based on Intel’s new 18A lithography node. This node may push Intel ahead of their competitors, and help to increase Intel’s margins/profitability.

You can join the discussion on Intel’s greatly reduced share price on the OC3D Forums.