Why Intel Corp. (INTC) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Intel Corp. (NASDAQ:INTC) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

A technician soldering components for a semiconductor board.

Intel Corp. (NASDAQ:INTC)

Intel Corp. dropped its share prices by 6.94 percent on Wednesday to end at $24.12 apiece as investors turned cautious over the new CEO’s potential move to lay off half of the company’s workforce to save the technology giant from a possible bankruptcy.

Lip-Bu Tan, who took over as INTC’s CEO on Tuesday, met with employees immediately and signaled that tough decisions will be made ahead.

According to reports, part of Tan’s strategic overhaul is likely to push for deeper efficiency improvements, which could result in further job cuts in non-essential departments, and reallocate resources towards AI innovation.

“Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry, and delight our customers like never before,” Tan said to Intel employees.

Overall, INTC ranks 4th on our list of Wednesday’s worst performers. While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as INTC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.