Intel's bad year worsens, with analyst decrying company as 'profoundly broken'

Intel's stock has plummeted by about 36% in 2024, making it one of the worst performers in the S&P 500. Following disappointing earnings, analysts have expressed concerns about the company's future. Bernstein's Stacy Rasgon described Intel as "profoundly broken" with a challenging short-term outlook. He emphasized the management's struggle to repair the company amid execution difficulties and structural headwinds. Baird's Tristan Gerra also highlighted challenges ahead, pointing out the low growth potential in the x86 market and the threat from competitors like ARM. Despite these negative assessments, Melius Research's Ben Reitzes remains optimistic, foreseeing a potential turnaround in the second half of the year driven by corporate PC refreshes and improved server business performance. However, Rosenblatt's Hans Mosesmann painted a bleaker picture, indicating a multi-year reconstruction phase for Intel. The company's struggle to adapt to market shifts, particularly in artificial intelligence, has raised concerns among investors and analysts alike.