Intel shares slide lower after report: The chipmaker’s stock slipped 7%
Intel’s stock dropped 7% on Thursday after a report that the company is working on a $100-billion chip to replace the company’s PowerVR GPUs.
Intel shares had been trading at a 10-year high.
The chip maker’s shares have been trading in the $60-$70 range for years.
Intel’s shares fell 8.9% on Tuesday.
“We continue to see the value of the company growing and the company remains one of the best-performing companies in the world,” Chief Financial Officer Tom Lipschultz said on a conference call with analysts.
“The key for us is the value that we continue to build and accelerate to make our customers even more powerful and more productive.
The company continues to be driven by a focus on the innovation and the business of the business.”
The chip company, which has struggled to maintain the market share it has in its mobile chips, is also investing in a new processor called the “Z80.”
The Z80 is expected to cost $50 billion.
“Intel continues to lead in the area of new and emerging technologies, but the Z80 will deliver an extraordinary value to Intel’s customers,” Lipschi said.
“I’m optimistic that this next generation processor will be able to deliver an even greater value to our customers.”
Intel’s earnings came in well below analysts’ estimates.
Its earnings for the fourth quarter ended March 31 fell 7% from a year ago.
Its revenue fell 3% from the same quarter a year earlier.
Intel reported a profit of $1.16 billion.
Intel CEO Brian Krzanich told investors the company had to cut costs in the wake of a $8 billion stock split in March.
Intel also is spending more money on research and development.
“It’s not just a cost-cutting move, it’s a strategic one,” Krzanikh said.