Intel stocks slump – can the chipmaker make a comeback?

Semiconductor maker, Intel, missed the boom in the sector thanks to its focus on PCs. Is it too late to catch up with its rivals?

 Pedestrians pass by Intel's headquarters
(Image credit: China News Service / Contributor)

Running chipmaker Intel may have been a “dream job” for CEO Pat Gelsinger when he began his tenure, says Asa Fitch in The Wall Street Journal. But three years on, things look “increasingly nightmarish”. Intel’s stock slumped by 26% to a 15-year low on 2 August, knocking more than $30 billion off the group’s market value. 

The collapse came after disappointing results and an outlook notable for unexpectedly low revenue and profit-margin forecasts. Intel also said it would lay off 15,000 employees, target $10 billion in cost cuts next year and suspend dividend payments in the fourth quarter, the first time in more than three decades the company has not made a payout. 

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri