Intel Stock Price Rises as Wall Street Approves of the Company’s Plan to Eliminate Jobs

Intel Stock

Intel Stock (NASDAQ:INTC)

Investors backed the semiconductor company Intel (NASDAQ:INTC) on Friday after it announced intentions to cut employment and reported better-than-expected profits.

Chief Executive Pat Gelsinger of Intel (NASDAQ:INTC) said late Thursday at a conference that the business will be “taking aggressive efforts to decrease expenses” due to “the present climate” in the technology industry. Gelsinger then used corporate jargon to explain that the corporation will take “measures to optimize our personnel” in its efforts.

The number of people laid off from Intel (NASDAQ:INTC) was not made public.

In addition to Gelsinger’s analysis, Intel (NASDAQ:INTC) announced a quarterly profit of 59 cents per share on sales of $15.3 billion. According to analysts’ estimates, Intel stock earnings per share were expected to be 33 cents on sales of $15.3 billion.

Intel (NASDAQ:INTC) expects to earn 20 cents a share, excluding one-time items, on sales of between $14B and $15B for the fourth quarter but notes that there will be challenges ahead. The business has reduced its full-year revenue projection from $65 billion to $68 billion to $63 billion to $64 billion.

Blayne Curtis, an analyst at Barclays, raised Intel stock from underweight to equal weight. According to Curtis, the PC industry is nearing a bottom, which bodes well for Intel’s financial performance in 2023.

However, Curtis said that the firm is “far from righted” and that he would want to see Intel announce more good sales from its data center and foundry initiatives before pronouncing the company back on track.

Intel is presently rated “hold” by Wall Street analysts but “buy” by writers on Seeking Alpha. Shares of Intel have been given a hold recommendation by Seeking Alpha’s quantitative methodology, which has historically outperformed the stock market.

Featured Image-  Pexels @ Pok Rie

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