Intel stock, chipmakers, AI, job cuts

Intel shares plummeted after the company said it would cut about 17,000 jobs and suspend dividend payments as part of a massive cost-cutting plan.

The company plans to “resize and refocus” its 116,500 employees as part of an effort to save $10 billion to address challenging trends.

Intel shares fell about 20% in extended trading on Thursday.

“Obviously market conditions are good in some places and not so good in others and we need to adjust our credit facilities appropriately,” Gelsinger said in an interview. The Wall Street Journal. “The AI ​​explosion is more rapid than we expected, and we need to adapt.”

Intel’s revenue fell 1% to $12.8 billion as demand for AI chips from companies like Nvidia shifted away from non-AI products. The company lost $1.6 billion in the quarter, compared with a profit of $1.5 billion in the previous quarter.

Progressive Group Calls for NVIDIA Investigation

The chipmakers’ job cuts come ahead of Friday’s release of the company’s July jobs report, with economists watching to see whether Intel’s job cuts are isolated to one company or tied to a broader industry slowdown.

What is Artificial Intelligence (AI)?

Intel Processor Core i5 2500K (iStock)

Intel will suspend its quarterly dividend of $0.125 per share in the fourth quarter but plans to pay a dividend on September 1 to shareholders of record as of August 7, 2024.

The stock has fallen more than 40% this year, while the Nasdaq Composite has risen more than 14%.

Click here to get FOX Business on the go