Intel (NASDAQ:INTC) The company’s shares fell again on Friday. The company’s stock price closed the daily session down 3.8%, according to data from S&P Global Markets Insights.
The stock has been hit hard lately, and its valuation took another hit today after the semiconductor specialist announced it would delay its Intel Innovation Conference. The company’s stock price has fallen 42% in the past month and 61% since the beginning of the year.
Intel Delivers More Bad News
Rumors began circulating Friday that Intel’s Innovation Conference scheduled for next month would be canceled, and the company later confirmed it would postpone the event until 2025. In the meantime, Intel said it would shift its presentation efforts to other, smaller, more focused events.
The announcement of the postponement of the Intel Innovation event comes after the company reported disappointing second-quarter results last week and announced drastic cost cutting. As part of a sweeping restructuring, the semiconductor company will lay off about 15% of its global workforce. The postponement of the high-profile conference is another sign that Intel is working to cut costs and embark on what appears to be a lengthy turnaround.
What’s next for Intel?
Intel’s recent second quarter report, guidance and restructuring announcements have dramatically changed the perception of the company. With the rise of artificial intelligence (AI) fueling strong performance and valuation gains for some big players in the chip industry, investors had hoped the company was poised to benefit from associated tailwinds. The company’s announcements over the past week have largely dashed hopes that the company is positioned for many near-term wins in the AI space.
Management comments and guidance suggest that demand for AI-driven PCs is unlikely to be a positive driver of earnings this year, and that the company’s contract manufacturing business is further away from being a driver of earnings than expected. Intel’s stock has been pushed to a decade-low, but the company is faltering at a time of intense and growing competitive pressures.
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