Intel is looking for cost-effective alternatives after a tough second quarter. The chip giant’s CEO, Pat Gelsinger, told investors last week that he has exited six businesses since becoming CEO in 2021, and the company has recently exited the drone business.
“It’s time to save,” Gelsinger told Yahoo Finance. “There are things that we have created in the last ten years that need to be removed. This helps accelerate the pace of change we are making.”
President Joe Biden (Photo: Oliver Contreras/Bloomberg)
(Photo by Alexander Kerner/Getty Images)
The CEO added that the six job exits freed up $1.5 billion for Intel to invest elsewhere.
Intel shares fell more than eight percent in Friday’s session, with seven Wall Street firms reportedly downgrading Intel shares.
Gelsinger told Yahoo Finance that Intel is “at the bottom” and trends will improve as product delays ease and seasonal forces drive demand.
“Looking forward, we believe Intel’s weak report will further strengthen the company’s position as a ‘show story’ as advances in manufacturing technology, product competitiveness and financial returns become more transparent to investors.” said Deutsche Bank analyst Ross Seymour.
“In our view, as the company’s updated guidance suggests strong revenue and margin growth, the first opportunity for Intel to regain confidence in its strategy will likely come in Q4, which is likely to be viewed as optimistic until implemented.” Added Seymour.
In June, Intel delayed a groundbreaking ceremony over concerns about a bill aimed at increasing semiconductor production by the United States for its planned multibillion-dollar Ohio chip plant, which Gelsinger calls the start of the “silicone heart.”
The Ohio plant has been cited many times by President Joe Biden as an example of major manufacturing development and an indication that the United States is playing a larger role in the global semiconductor industry rather than relying on countries like China as before.
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Source: Breitbart
