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Key Takeaways
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Shares of Intel fell further on Wednesday, amid a broader sell-off in chip stocks, as the company’s contract manufacturing business received more bad news.
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Reuters reported that recent tests of Intel’s latest manufacturing process, conducted by Broadcom, failed.
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Intel shares have lost roughly 60% of their value this year, including a 26% drop after a disappointing earnings report last month.
Intel (INTC) stocks extended their losses Wednesday amid a string of bad news, such as Reuters reported that recent tests of the chip giant’s most advanced manufacturing process, conducted by Broadcom (AVGO) failed.
Silicon wafers, on which chips are printed, were reportedly returned to Broadcom last month after going through Intel’s 18A manufacturing process. A study by Broadcom engineers found that the process is not yet ready to be used for high-volume production. Reuters said.
Intel and Broadcom did not immediately respond Investopedia requests for comments.
Last bit of bad news for Intel
While many chip stocks have soared during the crisis artificial intelligence (AI) question, Intel shares have lost about 60% of their value since the start of 2024.
That battle has accelerated in the past month, with a disappointing earnings report and the announcement that it would lay off about 15% of its employees as part of a larger cost-cutting plan. The earnings report sent shares down 26% the day after the release, to their lowest point in more than a decade.
The profit-related decline was followed by reports that concerns had arisen about the company’s bottom line planned construction of two new facilities in Germany. Shares were driven lower on Tuesday by a report that executives are preparing to submit plans cut costs and sell assets amid the company’s troubles and concerns that Intel might possible facial removal of the Dow Jones Industrial Average (DJIA).
Intel shares were down 2% at $19.67 on Wednesday afternoon.
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