[Alpha Biz= Reporter Kim Sangjin] Intel's stock has sharply declined following its announcement of second-quarter earnings that fell below market expectations. The company reported significant revenue and profit shortfalls, prompting a major restructuring plan to cut costs.

On August 1 (local time), Intel revealed that for the second quarter (April-June), it achieved $12.83 billion in revenue and earnings per share (EPS) of $0.02. This missed the $12.94 billion revenue forecast by market research firm LSEG and fell short of the anticipated EPS of $0.10. Notably, Intel's net profit of $1.48 billion in the same period last year turned into a net loss of $1.61 billion this year.

While Intel's Client Computing Group, which produces PC chips, saw a 9% increase in revenue to $7.41 billion—aligning with market expectations—its Data Center and AI segment underperformed. The segment generated $3.05 billion in revenue, missing the forecast of $3.14 billion.

Looking ahead to the third quarter, Intel projects revenue between $12.5 billion and $13.5 billion with an adjusted EPS loss of $0.03. These figures are below market forecasts of $14.35 billion in revenue and EPS of $0.31.

In response to these challenges, Intel announced a major restructuring plan to cut costs by $10 billion. This includes a plan to reduce its workforce by 15% and scale back capital expenditures.

 

 

 

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