Intel (NASDAQ:INTC) Cancels This Year’s Innovation Event

For chip stock Intel (INTC), the troubles only seem to continue. While it recently managed to address a major flaw in its processors, it is only now addressing a major cash crunch that led to the layoffs of several thousand employees. That cash crunch got a little more evident today, and Intel shareholders didn’t take the news well at all. Intel shares were down over 3% in Friday afternoon’s trading. The latest sign of money troubles at Intel came when it canceled, or at least postponed, the Intel Innovation event.

This year’s event was considered particularly important, noted a PC Magazine report, as Intel was poised to present new information about its upcoming processor line. Nevertheless, thanks to the latest financial results and Intel’s outlook for the rest of 2024, the firm decided to cancel the event and move it back to 2025. When in 2025, however, is not clear, so whether it has canceled Innovation 2024 altogether or is planning two Innovation events for 2025 remains to be seen.

Just How Bad Is It?

While this is certainly unwelcome news, it wasn’t the only cause for concern. A look at Intel’s latest earnings report provided that. There was an unexpected reduction in profit by $985 million due to “unusual items.” That implies that they’re not likely to be a drag on next quarter’s profits; “unusual events” are called that because they don’t show up at regular intervals. Still, investors never want to see an almost $1 billion loss.

Is Intel a Buy, Hold, or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 23 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 42.19% loss in its share price over the past year, the average INTC price target of $29.56 per share implies 49.63% upside potential.

See more INTC analyst ratings

Disclosure