• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Technology & Startups

Intel’s Lack of a Clear Plan Makes Wall Street Even More Bearish

December 6, 2024
in Technology & Startups
Reading Time: 5 mins read
A A
0
1
SHARES
3
VIEWS
Share on FacebookShare on Twitter


(Bloomberg) — Things were already looking bad for Intel Corp. shares this year. But the chipmaker’s sudden ouster of its chief executive officer has led to even more investors throwing in the towel.

Most Read from Bloomberg

The stock is on track for its worst week in three months after Intel abruptly announced that Pat Gelsinger was leaving and named two co-CEOs to run the business until it finds a permanent replacement. The chipmaker’s shares are down 58% this year, on pace for the worst annual performance since at least 1983. The stock rose about 1% in early trading Friday, looking to snap a four-day losing streak.

“You want to be directionless and rudderless, let’s put two people in the position,” said Kim Forrest, chief investment officer and founder at Bokeh Capital Partners. That sentiment is at the heart of this week’s selloff: while Gelsinger’s turnaround was taking too long, it may have been better for investors than having no clear indication of what’s next.

Interim co-CEO David Zinsner spoke at a UBS conference on Wednesday, hoping to soothe investor nerves by reiterating the company’s most recent guidance and saying it would keep a tight rein on capital spending. It didn’t work: the shares have continued to drop, while Lynx analysts led by KC Rajkumar called the presentation “wishy-washy” and said that Zinsner missed an opportunity to wipe the slate clean.

Gelsinger’s exit is the latest development in a dismal year. Intel has failed to gain traction in the booming market for artificial intelligence accelerators, while a pivot into making chips for other companies has been costly and slow. A catastrophic earnings report in the summer led to a swathe of analyst downgrades, while the stock is now firmly the worst-performing member of the Philadelphia Semiconductor Index this year.

The consensus rating on the stock — a proxy for the ratio of buy, hold, and sell ratings — is 2.96 out of five, the lowest since March 2023. Just seven of 52 analysts tracked by Bloomberg recommend buying Intel shares.

Until a permanent new CEO is found, many analysts and investors are staying on the sidelines. And some say they aren’t convinced that any potential candidates can fill Gelsinger’s shoes.

“I thought Gelsinger was the best-possible CEO for Intel. He was the strongest candidate to execute the company’s turnaround,” said Hendi Susanto, a portfolio manager at Gabelli Funds. “I can’t really come up with a list of candidates who have strong manufacturing backgrounds. It is a herculean task.”

Candidates reported to be in the mix, including Marvell Technology Inc. head Matt Murphy and former Cadence Design Systems Inc. CEO Lip-Bu Tan, fall short on manufacturing experience, technical acumen, experience at Intel and with CPUs, according to Citi analysts led by Christopher Danley.

The analysts did, however, cheer the company’s move on Thursday to add Microchip Technology Inc. CEO Steve Sanghi and former ASML Holding NV chairman and CEO Eric Meurice to its board, citing a dearth of semiconductor experience among existing directors.

Gelsinger’s exit does open the door for the troubled firm to consider potential options, including breaking up the company or various deal scenarios.

But without clarity on leadership or next steps for the company, the stock is likely to stay under pressure. Even after this year’s slump, it isn’t particularly cheap, trading at about 24 times forward earnings, roughly in-line with the chip index. Sector star Nvidia Corp. trades at 35 times forward earnings but it is expected to grow revenue more than 50% over its next full fiscal year, compared with 6.3% at Intel.

Thomas Martin, senior portfolio manager at Globalt Investments, noted that there is a lot of uncertainty about Intel’s different businesses and how they should be valued. He also cautioned that company turnarounds can be lengthy.

“GE managed it, but it took decades, and chips are a more competitive business,” Martin said. “Intel obviously isn’t worth zero, but you have to have the talent and knowledge to know what to do with it, and that’s a tall order.”

Top Tech Stories

  • Donald Trump says he is selecting venture capitalist David Sacks of Craft Ventures LLC to serve as his artificial intelligence and crypto czar, a newly created position that underscores the president-elect’s intent to boost two rapidly developing industries.

  • Dell Technologies Inc. has deployed tens of thousands of graphics processing units to power artificial intelligence work at Elon Musk’s supercomputer project in Memphis.

  • Elon Musk’s xAI has raised $6 billion in new capital, according to a regulatory filing, wrapping up a funding round that has been in the works for months and was said to value the artificial intelligence startup at more than $40 billion.

  • For many South Koreans, this week’s dramatic events were their first real-life brush with the nation’s history of military dictatorship. That’s why millions turned to a year-old movie on Netflix and a literary classic to try and make sense of the turmoil.

  • Defense tech companies Palantir Technologies Inc. and Shield AI have signed an agreement for a new strategic partnership, a step toward developing autonomous flight with AI-powered intelligence and operational control.

Earnings Due Friday

–With assistance from Subrat Patnaik and David Watkins.

(Updates stock moves at market open.)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

Tags: artificial intelligenceASML Holding NV chairman and CEO Eric MeuriceBloombergchief executive officerDavid ZinsnerIntel Corp.Pat Gelsinger
Previous Post

Best Artificial Intelligence (AI) Stock for 2025: Palantir vs. Microsoft todayheadline

Next Post

The Players Era Festival wants to change November nonconference scheduling todayheadline

Related Posts

Tesla tells Model Y and Cybertruck workers to stay home for a week

May 9, 2025
7

Sonos Interim CEO Says Company Has Turned a Corner and He Wants the Top Job

May 9, 2025
8
Next Post
ESPN 100 senior Jerry Easter commits to USC Trojans

The Players Era Festival wants to change November nonconference scheduling todayheadline

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
James Foley, director of Glengarry Glen Ross, dead at 71

James Foley, director of Glengarry Glen Ross, dead at 71

May 9, 2025

Nigeria Unlocks Intra-African Trade with New Pan-African Payment & Settlement System (PAPSS) Policy Boost

May 9, 2025
Stock markets stagnate as investors wait for Bessent’s trade talks with China

Stock markets stagnate as investors wait for Bessent’s trade talks with China todayheadline

May 9, 2025
Trump to allow commercial fishing in New England marine monument

Trump to allow commercial fishing in New England marine monument todayheadline

May 9, 2025

Recent News

James Foley, director of Glengarry Glen Ross, dead at 71

James Foley, director of Glengarry Glen Ross, dead at 71

May 9, 2025
3

Nigeria Unlocks Intra-African Trade with New Pan-African Payment & Settlement System (PAPSS) Policy Boost

May 9, 2025
3
Stock markets stagnate as investors wait for Bessent’s trade talks with China

Stock markets stagnate as investors wait for Bessent’s trade talks with China todayheadline

May 9, 2025
5
Trump to allow commercial fishing in New England marine monument

Trump to allow commercial fishing in New England marine monument todayheadline

May 9, 2025
6

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

James Foley, director of Glengarry Glen Ross, dead at 71

James Foley, director of Glengarry Glen Ross, dead at 71

May 9, 2025

Nigeria Unlocks Intra-African Trade with New Pan-African Payment & Settlement System (PAPSS) Policy Boost

May 9, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co