8 Worst Performing Tech Stocks in 2024

5. Intel Corp. (NASDAQ:INTC)

Year to Date Gain: -52.99%

Number of Hedge Fund Holders: 75

Intel Corporation (NASDAQ:INTC) was one company that was expected to be at the center of the artificial intelligence. However, that has not been the case, as the stock has lost 52.99% in market value, affirming its status as one of the worst-performing tech stocks in 2024.

The selloff comes from investors reacting to the company’s struggles in the foundry business. The business faces many uncertainties, especially with the company announcing a restructuring that includes lying off 15% of the workforce.

Intel Corporation (NASDAQ:INTC) has also been under pressure for failing to leverage its dominance in the PC and server markets. Its failure to develop a long-lasting lineup of mobile chips has seen its market share dwindle significantly amid stiff competition from Arm Holdings, stifling its growth prospects and sentiments.

Likewise, the company failed to spot the opportunity to develop discrete graphic processing units to support artificial intelligence applications. In contrast, Nvidia spotted the opportunity and ran away to become a trillion-dollar empire.

Nevertheless, Intel Corporation (NASDAQ:INTC) scored a significant win that appears to have paused the considerable pressure it’s been facing year to date. Amazon chose it to develop a custom artificial intelligence (AI) fabric chip, which was interpreted as a big win in the market.

Additionally, Intel Corporation (NASDAQ:INTC) did ink a strategic deal with AMD to form an advisory group on the x86 Central Processing unit architecture. The deal is quite significant as it should strengthen the company’s prospects in the intelligent pine CPU market that ARM Holdings currently dominates.

Intel Corporation (NASDAQ:INTC) was a part of 75 hedge fund portfolios at the end of Q2 2024, compared with 77 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total of nearly $2 billion.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q2 2024 investor letter:

“Intel Corporation (NASDAQ:INTC) stumbled, and shares retreated as the company continued to struggle to right the ship as part of its shift in strategy. The company reported a weak quarter, with most results coming in below expectations, especially margins. The company did outline accelerating revenue growth in the second half of the year based off stable PC demand, the ramp up of its AI product and the recovery of end markets off of cyclical lows.”