NY – April 3, 2024 (Financeflashnews) – Technology giant Intel reported a loss of $7 billion for the first quarter of 2024, its worst quarterly result in a decade. The company’s revenue from its core chipmaking business also missed analysts’ expectations.
Revenue Below Expectations
Revenue from the chipmaking division fell 31% year-over-year to $18.9 billion. This decline was reflected in Intel’s overall revenue, which fell 31% to $18.9 billion.
Analysts had already warned of potential problems at Intel, pointing to declining demand for PCs and deteriorating macroeconomic conditions.
Internal Mistakes and the Future of the Company
CEO Pat Gelsinger admitted that the company’s weak results were also due to internal mistakes, including the decision not to use extreme ultraviolet (EUV) machines in chip production. Although these machines require a higher initial investment, they would ultimately be cost-effective for Intel. Due to this decision, the company had to outsource about 30% of its manufacturing capacity to external manufacturers.
Despite this, Gelsinger remains optimistic about the future. The company is continuing with its planned investments in the construction and expansion of chip factories in the United States, with a total investment of approximately $100 billion.
Market Reaction
Investors reacted to the news of the weak results by sending Intel’s stock price down 5.2%. This decline is part of a 16% decline in the company’s stock price since the beginning of 2024.
Intel’s results are a signal for the entire technology sector. Investors will be closely watching how the company copes with current challenges and whether its investments in the future will pay off.
Key Points: Intel’s Dismal Q1 Results and Stock Plunge
- Headline: Intel’s Woes: Stock Plummets After Dismal Q1 Report
- Main Point: Intel’s poor Q1 2024 results, including a $7 billion loss and missed revenue targets, triggered a major sell-off, causing the stock price to crash.
- Supporting Points:
- Revenue from core chipmaking division fell 31%.
- Overall company revenue dropped 31% to $18.9 billion.
- Reasons for the decline include decreased PC and smartphone demand, economic woes, and internal mistakes at Intel.
- Investor response: massive sell-off, leading to an 8.5% stock price plunge (5-year low).
- Uncertain future: competition from AMD and TSMC, unproven new technology investments.
- Wider implications: potential ripple effect on the technology sector, heightened investor scrutiny.
- Need for Intel to address challenges and improve performance.
Source: Intel Press Release
