きせいさん wrote a post · Aug 6, 2024 18:01

Is it a good time to buy Intel now?

$Intel (INTC.US)$The stock price of Intel once again suffered a major blow in Monday's trading. The stock price of semiconductor companies ended the trading day with a 6.4% decline. On the other hand, $S&P 500 Index (.SPX.US)$ fell 3%, $Nasdaq Composite Index (.IXIC.US)$ fell 3.4%, $Dow Jones Industrial Average (.DJI.US)$ fell 2.6% at the end of trading.

Intel shares, which experienced a fierce sell-off last Friday, continued to decline today amid a market-wide retreat due to the backlash of carry trading with the Japanese yen. The release of the disappointing second-quarter report last week and the bearish research notes from analysts seemed to have a negative impact on the stock price.

With today's decline, Intel shares have fallen 60% in total trading in 2024, a 71% drop from its ten-year high. The future looks challenging for Intel.

Intel's second-quarter report suggested significant structural issues within the business. While it was widely understood that the company was undergoing a business transformation to position itself better for opportunities in AI and data centers, the earnings reports indicated that the chip specialist is undergoing the transformation much earlier than previously thought.

To support new cost-cutting measures, Intel announced that it will lay off approximately 15% of its employees and suspend dividends. However, the company is shrinking its scale and undergoing restructuring at a time when its competitive position in AI and other trends is becoming increasingly important.

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