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Arthur T Knackerbracket has processed the following story:

With the COVID spending spree on PCs at an end and consumers spooked by the economy, Intel's profit and revenue plunged in the second quarter, the chipmaker said Thursday. Intel's own problems, like delays in data center chip upgrades, also were a major factor.

Analysts were appalled. "Intel's Q2 takes the prize for the worst we have seen in our career," Bernstein analyst Stacy Rasgon said in a research note Friday.

[...] "For decades, Intel was able to cover up a litany of failed projects, poor acquisitions, and strategic foibles by pushing Moore's Law and process leadership," he said. "Unless they regain this leadership (we think unlikely), or change strategic direction, we expect growth, profitability, and cash flow problems to persist at Intel."

The results show how hard it will be for Intel to claw its way back to the cutting edge of chip manufacturing and lead the US semiconductor industry to reclaim clout lost to Asia. Intel's near-term problems pose real risks to its long-term plans.

[...] Revenue dropped 17% to $15.3 billion in the second quarter, and Intel's profit of 29 cents per share, excluding some charges like stock-based pay and inventory write-downs, was a 76% decrease compared with the same period a year earlier. Both results were well below Intel's own forecasts and analyst expectations. Including those charges, Intel posted a loss of $454 million.

[...] Intel's "long term targets remain outlandish," Rasgon said in a research note earlier this week, which downgraded his expectations for the chipmaker's prospects. "Frankly, anyone owning the stock is not there for the near term...but rather strapping into a 5+ year nebulous story that is just barely getting started."

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