Intel Stock Falls Further After Silicon Wafers Reportedly Fail Broadcom Tests

Key takeaways

• Intel shares fell again Wednesday amid a selloff in chip stocks as the company’s contract manufacturing business received more bad news.

• Reuters It has been reported that recent tests of Intel’s latest manufacturing process conducted by Broadcom have failed.

• Intel shares have lost about 60% of their value this year, including a 26% drop following a disappointing earnings report last month.

Intel (INTC) Stocks extended losses Wednesday amid a string of bad news, as Reuters reported that recent tests of the chip giant’s most advanced manufacturing process conducted by Broadcom (AVGO) failed.

The silicon wafers on which the chips are printed were reportedly returned to Broadcom last month after being put through Intel’s 18A manufacturing process. A review by Broadcom engineers found that the process was not ready for large-scale production. Reuters said.

Intel and Broadcom did not immediately respond to Investopedia requests for comments.

Latest bad news for Intel

While many chip stocks have surged, artificial intelligence (AI) Due to strong demand, Intel shares have lost about 60% of their value since the beginning of 2024.

These struggles have accelerated over the past month, with a disappointing results report and the announcement of a plan to lay off 15% of its employees as part of a broader cost-cutting plan. The earnings report sent shares down 26% the day after it was released, to their lowest level in more than a decade.

The profit drop was followed by reports of concerns about the company’s financial situation. planned construction of two new facilities In Germany, stocks were dragged down on Tuesday by a report that executives are preparing to present plans for reduce costs and sell assets amid the company’s struggles and concerns that Intel could potential face removal of the Dow Jones Industrial Average (DJIA).

Intel shares were down 2% at $19.67 Wednesday afternoon.

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