Intel Corp. shares rallied on course for their best day since the start of the COVID-19 pandemic Friday after the chip maker’s promised cost cuts and layoffs encouraged investors that have withstood shrinking margins and market share over the past several quarters. Intel
shares rallied as much as 11% to an intraday high of $29.22 after the chip maker’s otherwise poor earnings and forecast were rewarded by the promise of cost cuts and layoffs. Shares were last up 10% putting them on track for their best one-day performance since March 17, 2020, a week after COVID-19 was declared a pandemic, and to snap a nine-quarter streak of post-earnings declines.
Compared with a 40% drop on the PHLX Semiconductor Index year to date and a 20% fall on the S&P 500 Index
Intel shares had closed Thursday down nearly 50% for the year. Late Thursday, Santa Clara, Calif.–based Intel cut its full-year outlook once again, forecasting earnings of about $1.95 a share and revenue of $63 billion to $64 billion, citing “continued macroeconomic headwinds.” Wall Street had estimated earnings of $2.20 a share and revenue of $65.3 billion. That was forgiven, however, as Intel announced plans to drive $3 billion in cost reductions in 2023, and $8 billion to $10 billion by the end of 2025. Intel CEO Pat Gelsinger told analysts on the conference call following earnings that the company was “aggressively” addressing costs, which would include “efforts to optimize our headcount,” and efficiencies particularly in its foundry business, Integrated Device Manufacturing 2.0 …