What is going wrong for Intel?

The market reaction was brutal. On August 1st Intel released a dismal set of results. The semiconductor giant’s sales were down by 1%, year on year, and the company declared a net loss of $1.6bn, compared with a profit of $1.5bn in the same period in 2023. “Our costs are too high, our margins are too low,” wrote Pat Gelsinger, its chief executive, in a note to employees. As a consequence, Intel plans to slash 15,000 jobs and to suspend dividends, which it has paid since 1992. Since the results were published its share price has plunged by nearly 30%.