Intel Corp. CEO Pat Gelsinger holds a wafer while speaking at the Computex conference in Taipei, Taiwan, Tuesday, June 4, 2024.
Annabelle Chronicle | Bloomberg | Getty Images
Intel Chief Executive Pat Gelsinger said on Thursday it had been a “tough few weeks” since the chipmaker’s disastrous earnings report and that the company was working to address investor concerns.
“We respect some of the skepticism that the market has raised,” Kissinger said during a fireside chat at Deutsche Bank. Technical conference in Dana Point, California. “We believe we are ready to meet the challenge.”
Earlier this month, Intel’s shares plunged 26% after the company released its quarterly earnings report, marking Wall Street’s worst day in more than 50 years. The stock is down 59% this year and is near its lowest level in more than a decade.
The company has been under intense pressure over the past few years as it continues to spend billions of dollars to build a chip manufacturing business while eating into market share in its core PC and data center businesses and fails to make significant gains in artificial intelligence. Progress of meaning.
Gelsinger said Thursday that the company will continue to work to address weakness in its artificial intelligence-driven server business. But he expressed optimism about the future.
“We see the finish line in sight,” Kissinger said.
He added that the company will soon launch Lunar Lake, which he called “the most compelling AI PC product ever.” Intel shares rose more than 4% on Thursday, joining gains in the broader technology sector.
The company has hired advisers including Morgan Stanley to help it fend off scrutiny from activist investors, CNBC reported Friday. Gelsinger did not address the issue of activists or the sudden departure last week of industry veteran Lip-Bu Tan from Intel’s board. Reuters reported that Tan had serious disagreements with other directors over the steps the company needed to take.
Gelsinger acknowledged that Intel shareholders were justified in being dissatisfied with the company’s performance. Earlier this month, Intel announced on the day of its earnings release that it would lay off 15,000 employees and would consider cuts to its investment portfolio. Gelsinger said he believes the efforts will pay off, pointing to “signals” from outside foundry customers in the pipeline.
Intel reported a net profit of $1.48 billion in the year-earlier period and revenue that fell short of expectations, but in its most recent quarter, the company posted a net loss of $1.61 billion.
watch: Intel hires Morgan Stanley for aggressive defense
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