Intel used to dominate the U.S. chip industry. Now it's struggling to stay relevant
Publishing timestamp: 2024-04-26 13:24:36
Summary
Intel, once the biggest U.S. chip company, has been surpassed by rivals due to missteps. Shares plummeted after disappointing earnings, making Intel the worst-performing tech stock in the S&P 500. The company's long-awaited turnaround seems far off, with challenges in regaining market share and catching up in semiconductor manufacturing. CEO Gelsinger is betting on a risky business model change, but investors remain skeptical. Intel's struggles can be traced back to missed opportunities in the mobile chip boom and AI craze. The company is now focusing on AI chips and trying to catch up to TSMC through significant investments in facilities and tools. Intel aims to regain leadership by 2026, but faces tough competition and high costs.
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