Why Intel Stock Plunged Again Today

Intel (INTC -3.81%) shares fell again in Friday trading. The company’s share price ended the daily session down 3.8 percent, according to data from S&P Global Market Intelligence.

The stock has been battered lately, and its valuation took another hit today after the semiconductor major announced it would postpone its Intel Innovation conference. The company’s share price is now down 42% in the past month and 61% year-to-date.

Intel delivers yet another piece of bad news

Reports began circulating Friday that next month’s planned Intel Innovation conference would be canceled, and the company later confirmed it would postpone the event until 2025. Meanwhile, Intel said it would shift its presentation efforts to smaller and better directed. the events.

The news of the postponement of the Intel Innovation event follows the company’s disappointing second-quarter results last week and an announcement that it will roll out dramatic cost-cutting initiatives. As part of a dramatic restructuring, the semiconductor maker will lay off about 15 percent of its global workforce. The postponement of the high-profile conference offered another sign that Intel is scrambling to cut spending and plan what appears to be a lengthy turnaround effort.

What’s next for Intel?

Intel’s recent Q2 report, forward guidance and restructuring announcements have radically changed perceptions of the company. With the rise of artificial intelligence (AI) driving strong performance and valuation gains for some big players in the chip industry, investors have hoped the company is poised to benefit from related tailwinds. The company’s announcements over the past week have largely dashed hopes that the business is positioned to make many near-term gains in the AI ​​space.

Management comments and forward guidance suggest that demand for AI-centric PCs is unlikely to be a positive earnings catalyst this year, and the company’s contract manufacturing business is further away from being a profit generator than previously expected. Intel shares have been pushed to a decade low, but the company is reeling at a time when competitive pressures are intense and growing.