I had a tough chat last night with Intel (INTC) CEO Pat Gelsinger following the company's whopper of an earnings miss, shockingly bad guidance, a dividend suspension and a 15% headcount reduction.
I appreciate he always steps up to the mic on Yahoo Finance (I have covered his entire Intel career) whether the quarter is good or bad, and this one was really not good at all. But wow with this one.
"This is the biggest restructuring of Intel I'd say since the memory microprocessor decision four decades ago," Gelsinger told me.
Gelsinger says he is in it for the long haul despite being disappointed in the quarter and outlook.
"This is what I signed up for [when I came in as CEO]," Gelsinger added.
As no surprise, the Street's reaction this morning is pretty brutal.
I left my chat with Gelsinger thinking Intel may not show green shoots of any kind (sales, margins, cash flow) deep into 2025. It's going to take some time to repair investor trust and drive a Street upgrade cycle on a stock that is now severely beaten down.
Tough to see on such an iconic American company.