Intel Investors’ Pessimism Over Turnaround Wipes Out $27 Billion of Value

Intel Corp.’s latest attempt to prove to investors that its turnaround strategy is on track instead spurred a $27 billion rout that further widened the gap between the chipmaker and its peers as it struggles to capitalize on investor demand for all things artificial intelligence-related.

The company has plunged 15% since an April 2 update about its newly broken-out foundry division revealed a less-than-rosy outlook for operating losses in the unit. That’s pushed its year-to-date declines to 25%, a stark reversal from its 90% rally in 2023 and well behind strong returns from peers like Nvidia Corp. and Advanced Micro Devices Inc. It’s also become the second-worst performing stock on the Philadelphia Semiconductor Index this year, leading only Wolfspeed Inc.