2024-08-03 02:35:58
AI is being beaten by Nvidia-AMD
The new business foundry sector is also shaken
Intel, which has been receiving full support from the U.S. government’s semiconductor ‘Made in USA’ policy, is facing a crisis with a quarterly loss of 2 trillion won. Immediately after the earnings announcement, the stock price plummeted by nearly 20%, and the company also announced a cost-cutting measure to restructure 15% of its employees.
On the 1st (local time), Intel announced that it had sales of $12.8 billion (approximately KRW 17.56 trillion) and a net loss of $1.61 billion (approximately KRW 2.2 trillion) in the second quarter of this year (April to June). Sales decreased by 1% compared to the same period last year, falling short of the market forecast (USD 12.95 billion).
In particular, sales in the data center and artificial intelligence (AI) sectors recorded $3.05 billion, falling short of the market outlook ($3.14 billion). Intel, whose stock price has plunged nearly 40% this year due to being an “AI dropout,” also plummeted 18.9% in after-hours trading immediately after the earnings announcement. Bloomberg News analyzed, “This performance reveals the dramatic decline of Intel, which had dominated the semiconductor industry for decades,” and “Competitors specializing in AI, such as Nvidia and AMD, are taking Intel’s (existing) customers.”
Previously, Intel had embarked on the ‘rebuilding of the Intel kingdom’ with full support in line with the US semiconductor supply chain reconstruction strategy, but there is an assessment that its core business, the central processing unit (CPU), is falling behind Nvidia and AMD’s graphic processing units (GPUs) in the AI trend, and its new business, foundry, is also faltering.
Intel, which is suffering from poor performance, also announced a large-scale restructuring plan to cut costs by $10 billion on the same day. It announced that it would lay off more than 15,000 people, equivalent to 15% of its workforce, and that it would not pay dividends in the fourth quarter of this year (October to December).
Reporter Kwak Do-young [email protected]
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2024-08-03 02:35:58