Intel Stock Craters After Announcing 15K Layoffs and $1.6B Q2 Loss
Intel is stuck in a chip-themed nightmare — but not the tasty Doritos kind. The beaten-down semiconductor company just had its worst trading day in 50 years, with its stock dropping 26% to decade-lows. It’s now trading at levels not seen since 1997. Despite receiving $8.5B in government funding and an ambitious turnaround plan, Intel can’t gain footing in the AI arena — dominated by nimble rivals like Nvidia and AMD.
- The chip giant reported a staggering $1.6B loss in Q2. To turn things around, Intel plans to cut 15K jobs, suspend dividends, and slash costs by nearly $40B over the next two years.
- The business aims to focus on chip technology and manufacturing, streamline its product lineup, axe bureaucracy, and invest in fewer high-impact projects.
Intel’s AI gambit: GPUs are crucial for AI workloads, but Intel has mainly focused on CPUs and lacks a competitive AI chip, which buyers increasingly prefer. Intel’s AI and data center revenue hit just $3B this quarter — a fraction of Nvidia’s $23B in Q1. The company also grapples with losing core partners like Apple and Microsoft, opting to produce chips in-house. As Intel scrambles to reboot its strategy, the Redditor who bet $700K on the stock might need a complete system restore.
