Intel CEO, Pat Gelsinger, opened up about the recent struggles faced by the chipmaker following a disastrous earnings report. The company’s stock price plummeted by 26%, marking its worst day on Wall Street in over 50 years. With shares down 59% for the year, Intel has been under immense pressure as it grapples with various issues.
One of the key challenges highlighted by Gelsinger was the ongoing weakness in Intel’s server business, driven by artificial intelligence. Despite the setbacks, Gelsinger expressed optimism for the future, mentioning the upcoming launch of Lunar Lake as a significant step forward in the AI PC market. However, the company has been unable to make substantial progress in AI, while also dealing with market share loss in its core PC and data center business.
In an attempt to address investor concerns, Intel has engaged advisors from Morgan Stanley to navigate through activist investor scrutiny. Gelsinger acknowledged that shareholders have valid reasons to be disappointed with the company’s performance. The recent announcement of employee layoffs and portfolio cuts were part of Intel’s efforts to streamline operations and enhance profitability in the long run.
Despite the challenges, Gelsinger remains hopeful about Intel’s prospects and highlighted positive signals from external foundry customers. Intel aims to leverage its strengths and capabilities to bounce back from this setback. With a net loss of $1.61 billion in the latest quarter, Intel is focused on implementing strategic initiatives to improve financial performance and regain investor confidence.
Overall, Intel’s CEO is committed to addressing the issues plaguing the company and steering it towards a path of sustainable growth. By acknowledging past mistakes and outlining a clear plan for the future, Intel aims to emerge stronger and more resilient in the highly competitive tech industry.
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