Is it time to buy Intel now?

Intel shares, which had a furious sell-off last Friday, fell today as the entire market recedes from the reaction of carry trading using Japanese yen. In response to the fact that the second quarter report announced last week was extremely disappointing, it seems that the fact that analysts announced a bearish research note also had an adverse effect on stock prices.

Due to today's fall, Intel shares have fallen 60% in 2024 trading as a whole, and 71% from their 10-year high. Intel has a very difficult future ahead of us.

Intel's second quarter report suggested there were major structural issues within the business. It was already widely understood that the company is planning a business transformation in order to establish a better position for business opportunities in AI and data centers, but this financial results announcement suggests that the company, which is a chip specialist, is working on business transformation at a much earlier stage than previously thought.

In order to support new cost reduction measures, Intel announced that it would dismiss approximately 15% of its employees and stop paying dividends. However, the company is scaling down and restructuring at a time when competitive positioning in AI and other trends is becoming increasingly important.