Intel Falls as Outlook Shows Costly Path to Regain Dominance
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Intel Corp. Chief Executive Officer Pat Gelsinger spelled out the cost of his drive to return the world’s largest chipmaker to leadership of the industry and investors weren’t pleased. Shares were down 10% in premarket trading.
Executives said profitability will suffer during the next few years because of increased spending on the company’s manufacturing technology. Near term, if Intel’s fourth quarter comes in as the chipmaker projects, sales will decline 3% from a year earlier, gross margin will drop 6.5 percentage points and earnings per share will fall about 40%.