Intel CEO Pat Gelsinger: "We see the finish line in sight"
"We respect some of the skepticism we've received from the market, but we believe we're up for the challenge," he added, despite the company's stock falling 59% this year and the significant cutbacks announced earlier this month.
Intel CEO Pat Gelsinger acknowledged the challenges the company has faced, describing the past few weeks as "difficult" following a disappointing earnings report. Speaking at Deutsche Bank's technology conference in Dana Point, California, on Thursday, Gelsinger admitted, "We respect some of the skepticism we've received from the market," but expressed confidence in the company's ability to overcome these obstacles. "We believe we're up for the challenge," he added.
According to Bloomberg, the company is discussing a split of its product-design and manufacturing businesses, as well as scrapping some factory projects. Discussions are still in early stages and no major move is expected in the near future.
Earlier this month, Intel's stock plummeted 26% after its quarterly earnings report, marking the company's worst day on Wall Street in over 50 years. The stock has fallen 59% this year, trading near its lowest levels in more than a decade.
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Gelsinger highlighted the difficulties Intel is experiencing, particularly in its server business, which has been impacted by AI-driven weaknesses. Despite these challenges, he remained optimistic, stating, "We see the finish line in sight." He also teased the upcoming launch of Lunar Lake, describing it as "the most compelling AI PC product ever."
Earlier this month, Intel announced it would be laying off 15,000 employees and exploring potential portfolio cuts in response to its financial struggles. Calcalist has also revealed that the company will be shutting down its startup accelerator Intel Ignite. Gelsinger expressed confidence that these measures would be beneficial, citing "signals" from external foundry customers as a positive sign for the future.
