On Friday, July 25, before the U.S. stock market opened, Intel Corporation (NASDAQ: INTC ) fell 7%.
On the news front, Intel released its second-quarter results: revenue was $12.9 billion, flat year-on-year, exceeding the upper limit of previous guidance; net profit loss was $2.9 billion, down 81% year-on-year, the sixth consecutive quarter of losses, setting a record for the longest consecutive losses in 35 years. Gross profit margin fell to 27.5% during the period, compared with 35.4% in the same period last year.
In terms of performance guidance, the company predicts that the loss in the third quarter will be more serious than expected and will reduce the size of the workforce. The company is implementing a plan to cut about 15% of its employees, and it is expected that the total number of employees worldwide will be about 75,000 by the end of this year.
In terms of capital expenditure, Intel stepped on the "brakes" and announced that it would no longer advance previously planned projects in Germany and Poland, while further slowing down the construction progress of its factory in Ohio, USA, in order to achieve a precise match between capital expenditure and market demand.
In addition, US chip maker Intel issued a warning on July 24 local time that it may stop developing the next-generation chip 14A (14A refers to 1.4 nanometer technology, which is currently the most advanced chip production process) due to financial problems.
Analysts warn that if the market response to Panther Lake is less than expected or the mass production of the 18A process is delayed, Intel may fall into a vicious cycle of "the more layoffs, the weaker it becomes." In the semiconductor industry, a generation of technological iteration lag can lead to a cliff-like drop in market share.