U.S. stocks fell sharply on Friday as a July jobs report came in well below expectations, raising fears of a recession. The tech index fell 2.43%, down more than 10% from its recent all-time high. This has also caused a sharp decline in the cryptocurrency market. Bitcoin has fallen sharply since the opening of the US stock market, falling from 65K to 63K, and then continued to fall to 60K, and it was 61K at the time of writing; in the past week, due to the various disputes between Trump and the Bitcoin conference, "Sweet words" brought Bitcoin to 70K for a time, but unexpectedly, it lost another 10% in just a short period of time.
Intel stock price plummets historically
Intel (INTC) shares took a historic plunge on Friday, suffering their biggest one-day drop in 50 years. Shares plunged 26% to $21.48, their lowest price since 2013, after Intel posted disappointing earnings and announced a major restructuring plan.
Key earnings miss and restructuring announcement
Intel's stock price fell sharply as the company reported a huge profit that fell short of expectations.
The company reported a net loss of $1.61 billion, compared with net income of $1.48 billion a year earlier. Adjusted earnings per share fell sharply to 2 cents, well below analysts' average estimate of 10 cents. Revenue also fell short of expectations.
In response to these disappointing numbers, Intel unveiled a massive restructuring plan. The plan includes cutting more than 15% of its workforce and cutting full-year capital spending by more than 20%. Additionally, the company announced that it will not pay a dividend in the fourth quarter of fiscal 2024.
Impact on the global semiconductor market
Intel's stock price plunge has had a ripple effect on the global semiconductor market. The Nasdaq fell 2.4%, while semiconductor giants such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung also posted notable losses, with TSMC closing down 4.6% in Taiwan and Samsung down more than 4% in South Korea. TSMC, the world's largest chipmaker, and Samsung, a leading memory semiconductor company, have both felt the impact of Intel's downturn.
Competitive pressure leads to losses
Intel CEO Pat Gelsinger described the reorganization as the most significant change since the company shifted from memory to microprocessors four decades ago. Gelsinger deepened its quarterly loss as it ramps up production of Core Ultra PC chips designed for artificial intelligence workloads and faces fierce competition from AMD, Qualcomm and other rivals. The layoffs will mostly occur this year as part of a $10 billion cost-cutting plan.
This article U.S. stocks plummeted, Bitcoin slid into 60K, and Intel’s stock price plunged historically first appeared on Chain News ABMedia.
