Intel’s long-awaited turnaround looks farther away than ever after the company reported
dismal first-quarter earnings. Investors pushed the shares down 9% on Friday to their lowest level of the year.
Although Intel’s revenue is no longer shrinking and the company remains the biggest maker of processors that power PCs and laptops, sales in the first quarter trailed estimates. Intel also gave a soft forecast for the second quarter, suggesting weak demand.
It was a tough showing for CEO Pat Gelsinger, who’s early in his fourth year at the helm. But Intel’s problems are decades in the making.
Before Gelsinger returned to the company in 2021, the company, once synonymous with “Silicon Valley,” had lost its edge in semiconductor manufacturing to overseas rivals like
Taiwan Semiconductor Manufacturing Co. Now, in a high-risk quest, it’s spending billions per quarter to regain ground.
