“It feels like they’re clearing out a lot of the bad news,” said Matt Bryson, an analyst at Wedbush Securities, who added that the company should have cut projections several quarters ago. “If you believe in Intel, you believe in Intel in 2024, or 2025 or 2026.”
Intel Corp. Chief Executive Officer Pat Gelsinger slashed sales and profit forecasts for the rest of the year, conceding that the struggling chipmaker needs more time to make its products competitive while assuring investors that the current quarter will be the nadir.
The company, which in April had reiterated its annual sales forecast, reported steeply lower second-quarter results and said revenue this year will be as much as US$11 billion less than projected, buffeted by a slackening economy and server market-share losses. The CEO of the biggest maker of computer processors essentially asked for more patience, saying he’s fixing execution issues that have dogged product releases since before he took over last year, and expressed confidence in his strategy to regain industry leadership.
