Intel (INTC)’s senior unsecured rating was downgraded by Moody’s to BAA1 from A3 rating over apprehensions about the chipmaker’s profitability, Reuters reported Thursday citing the credit ratings firm. Moody’s also changed Intel’s unsecured ratings outlook to negative from stable, while affirming the company’s Prime-2 short-term commercial paper rating, the report said. Moody’s said that it expects Intel to face much weaker profitability over the next 12 to 18 months, according to Reuters.

Intel Corp (NASDAQ:INTC) has made headlines with its recent announcement of significant restructuring and disappointing quarterly earnings. The tech giant reported earnings of just 2 cents per share, falling dramatically short of the analyst consensus estimate of 10 cents. This represents a staggering 84.62% decrease from the same period last year. Intel’s response includes a major $10 billion cost-reduction plan aimed at streamlining operations and reducing headcount by over 15%, with the majority of cuts expected by the end of 2024. Additionally, the company will suspend its dividend starting in Q4 2024. Analysts are reacting with a mix of skepticism and cautious optimism. Here’s how key industry voices are interpreting the latest developments. BofA Securities analyst Vivek Arya downgraded the stock to Underperform with a price target of $23, down from $35. Cantor Fitzgerald analyst C.J. Muse maintains a Neutral rating with a revised price target of $27, down from

Downgrades of Intel keep coming as its latest quarterly results showcase its ongoing struggles. Vivek Arya and Duksan Jang, analysts at BofA Securities, say in a research note that the chip-maker’s IDM structure isn’t equipped to simultaneously compete against rivals including Nvidia, Advanced Micro Devices and Taiwan Semiconductor Manufacturing. They also list a lack of competitive AI accelerators that continues to reduce relevance to critical cloud customers and the suspension of its dividend that could make its stock less attractive to some investors. The analysts lower their price objective to $23 from $35 and downgrade their rating to “underperform” from “neutral.”

Intel Corporation (NASDAQ:INTC) shares are falling on heavy volume Friday after the company posted worse-than-expected second-quarter results. The Details: Intel missed analysts’ expectations with quarterly sales of $12.83 billion, a 0.9% decrease year-over-year and earnings of 2 cents per share. The company also suspended its quarterly dividend beginning in Q4 and announced a $10 billion cost-reduction plan that it says will include a headcount reduction of greater than 15%. Intel guided for a loss of 3 cents per share in the third quarter. “Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation,” said Pat Gelsinger, Intel CEO. Analysts React: Raymond James downgraded Intel from Outperform to Market Perform, and