Intel Stock (NASDAQ:INTC)
Rumors of massive layoffs at Intel (NASDAQ:INTC) have prompted semiconductor industry experts to speculate on these reports‘ implications for Intel’s business. Despite that, Intel stock surged in the market.
According to Bank of America Securities analyst, Vivek Arya on Wednesday, Intel (NASDAQ:INTC) planned 20% cuts in marketing and sales staff, as well as plans for greater separation between the company’s design and manufacturing teams, are necessary but “would be insufficient to change our fundamental concerns” regarding Intel’s core strategic, competitive, and financial risks.
Bloomberg reported on Tuesday that Intel (NASDAQ:INTC), which has over 114,000 employees, may announce layoffs in connection with the release of the company’s third-quarter earnings on October 27 after the end of the trade.
Regardless of how many people the semiconductor giant employs, Arya claims that Intel’s (NASDAQ:INTC) basic disadvantages cannot be ignored despite the company’s efforts to cut expenses.
Some of these problems include dependence on consumer PCs, which have lately seen a fall in international sales owing to challenges with suppliers and a downturn in demand, and what Arya called “subscale production” that lagged behind that of Taiwan Semiconductor (TSM).
Arya has had a bearish stance on Intel stock for some time, and the firm now has an underperforming rating (the equivalent of a sell recommendation) with a $30 price objective per share.
Arya has a generally pessimistic outlook on Intel stock, although she did acknowledge a potential “bright side” for the firm. Arya said, “Intel (NASDAQ:INTC)is the only U.S.-based supplier that might even come close to that aim over the next few years,” while discussing the United States plans to expand its domestic semiconductor foundries as an alternative to Asian manufacturers.
This week, Intel (NASDAQ:INTC) CEO Pat Gelsinger said that the business would begin using its internal foundry approach for its own and its customers’ chips.
Featured Image- Megapixl @ Danielconstante
Author Shariq Khan 
