Intel (NASDAQ: INTC) stock fell again in Friday's trading. The company's share price closed out the daily session down 3.8%, according to data from S&P Global Market Intelligence.
The stock has been getting crushed lately, and its valuation took another hit today after the semiconductor specialist announced that it would be delaying its Intel Innovation conference. The company's share price is now down 42% over the last month and 61% year to date.
Intel delivers another bit of bad news
Reports began circulating Friday that next month's planned Intel Innovation conference would be canceled, and the company later confirmed that it would be postponing the event until 2025. In the meantime, Intel has said that it will shift its presentation efforts to other smaller and more targeted events.
The news of the postponement for the Intel Innovation event comes on the heels of disappointing second-quarter results published by the company last week and an announcement that it would be carrying out dramatic cost-cutting initiatives. As part of a dramatic restructuring, the semiconductor player will be laying off roughly 15% of its global workforce. Postponing the high-profile conference provided another sign that Intel is scrambling to reduce its expenses and map out what looks to be a lengthy turnaround effort.
What comes next for Intel?
Intel's recent Q2 report, forward guidance, and restructuring announcements have radically shifted perceptions about the company. With the rise of artificial intelligence (AI) powering strong performance and valuation gains for some big players in the chip industry, investors had been hoping that the company was on the verge of benefiting from related tailwinds. The company's announcements over the last week have largely dashed hopes that the business is positioned to score many near-term wins in the AI space.
Management's comments and forward guidance suggest that demand for AI-focused PCs is unlikely to be a positive-earnings catalyst this year, and the company's contract-fabrication business is further away from being a profit driver than previously expected. Intel's stock has been pushed down to the range of a decade-long low, but the company is faltering at a time when competitive pressures are intense and escalating.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
Why Intel Stock Sank Again Today was originally published by The Motley Fool