Intel Corp. CEO Pat Gelsinger holds a wafer while speaking at the Computex conference in Taipei, Taiwan, Tuesday, June 4, 2024.
Annabelle Chi | Bloomberg | Getty Images
Intel Chief Executive Pat Gelsinger said on Thursday it had been a “tough few weeks” for the chipmaker since its founding. disastrous earnings report The company is 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 huge pressure The company has continued to spend billions of dollars over the past few years building its chip manufacturing operations while steadily eating away at market share in its core PC and data center businesses and failing to make meaningful progress in artificial intelligence.
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.
Company owned Recruited advisers including Morgan Stanley That helps it fend off scrutiny from activist investors, CNBC reported on 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.
