Intel recently announced its quarterly financial results (Q2 2024), which were lower than expected and forced the company to suspend its quarterly dividend starting in Q4 2024 and take additional measures to reduce costs by $10 billion in 2025. First of all, this includes certain restructuring and layoffs of about 15,000 employees.
While waiting for these results, the company's share price dropped from ~$31 to ~$29, and immediately after the announcement of the quarterly results, the price fell to ~$21. At the same time, the total capitalization decreased from $131 billion to $96 billion.
Intel has been trying to keep investors' spirits up by publishing updates that its ambitious 5N4Y plan (five silicon fabs in four years) is nearing completion and that the company is on the verge of boosting profits from the rise in the AI computer market. There are certainly expectations of Lunar Lake chips, as well as Arrow Lake processors, which will be introduced for various system segments by the end of this year.
Significant share price fluctuations are fairly typical for tech companies, but they are usually not as rapid as in the case of Intel. Therefore, the company will have to put in a lot of effort to speed up processes and launch promising products and ultimately change the trajectory of its financial performance.