10 Worst Performing Stocks in S&P 500 in 2024

2. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 75

Year-to-Date Share Price Performance: -53.26%

Intel Corporation (NASDAQ:INTC) is a major player in the tech industry, specializing in the design and production of computer components like microprocessors, chipsets, and networking devices. The company has played a key role in advancing the computing field and serves both consumer and enterprise markets, providing processors to leading tech firms and maintaining a strong foothold in the PC and server sectors.

Intel (NASDAQ:INTC) has made it to almost every one of our worst-performing stocks list over the last few weeks including worst-performing Nasdaq stocks, worst-performing blue chip stocks, and worst-performing tech stocks. Despite making progress in product and process development during the second quarter, the company faced several challenges, including new export restrictions and the faster adoption of AI CPUs, which hurt its profit margins.

Its foundry business underperformed, and PC chip sales declined, which added to its troubles. It is also facing tough competition from Taiwan Semiconductor, and reported significant losses, with a $2.8 billion operating loss in Q2 and a total of $5.3 billion for the first half of the year.

Nevertheless, Intel (NASDAQ:INTC) is taking steps to improve its future performance with a cost reduction plan. The company aims to cut its workforce by 15% by 2025 and reduce operating expenses to $17.5 billion that year, with more cuts anticipated in 2026. Capital expenditures will also decrease, with gross spending for 2024 expected between $25 billion and $27 billion, and net spending between $11 billion and $13 billion. To focus on long-term investments, the company will suspend its dividend to maintain liquidity.