Intel Stock Extends Losses as Analysts Say Chipmaker Faces 'Formidable Hurdles'

Intel (INTC) shares dropped complete 6% Monday, extending losses aft nan chipmaker posted disappointing quarterly results past week and announced layoffs to trim costs.

In nan aftermath of Intel's latest results, analysts expressed doubts whether nan chipmaker's plans to trim expenses and accelerate its manufacturing ramp-up for artificial intelligence (AI) products will beryllium capable to thief nan patient retrieve marketplace share.

Goldman Sachs analysts said Intel's plans to execute astir $10 cardinal successful costs reductions, which see laying disconnected 15% of its workforce, whitethorn not beryllium "sufficient for a sustained betterment successful nan company's competitory position."

Meanwhile, analysts astatine Baird said "formidable hurdles remain," anticipating Intel's costs challenges will transportation into adjacent year.

Goldman Sachs analysts maintained a "sell" standing connected Intel stock, and lowered their value target to $22 from $19 previously, while Baird analysts held a "neutral" standing and trim their value nonsubjective to $20 from $40.

Shares of Intel closed 6.4% little Monday astatine $20.11. They've mislaid astir 60% of their worth since nan commencement of nan year.