Intel Corporation (NASDAQ:INTC) shares fell sharply on Monday, extending losses following the company’s disappointing quarterly results and the recent announcement of layoffs aimed at reducing costs.
Goldman Sachs analysts have raised doubts about whether Intel’s cost-cutting strategy, which includes a plan to reduce expenses by around $10 billion and lay off 15% of its workforce, will be sufficient to achieve a sustained recovery in the company’s competitive position.
Baird analysts have identified “formidable hurdles” for Intel, predicting that the company’s cost challenges will persist into the next year. They have expressed concerns about Intel’s ability to regain market share despite its efforts to trim expenses and accelerate its manufacturing ramp-up for artificial intelligence (AI) products.
Goldman Sachs maintained a “sell” rating on Intel’s stock, lowering their price target to $22 from a previous $19. Meanwhile, Baird downgraded their price target to $20 from $40, while maintaining a “neutral” rating.
Intel shares closed 6.4% lower at $20.11 on Monday, marking a 60% decline in value since the beginning of the year.
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Author Faith Yakubu 
