(Bloomberg) — Intel Corp. Chief Executive Officer Pat Gelsinger said his company’s stock deserves the drubbing it’s currently getting from investors after earnings disappointed shareholders and the chipmaker itself.
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“We deserve to be down today,” he said in an interview with Bloomberg Television. “With the earnings we’ve reported and the guidance we gave, it is a bit of a reset. We’ve disappointed ourselves and our shareholders.”
Gelsinger stuck to his assertion that the current quarter will be the low point for Intel, a long-dominant chipmaker that lost its technological edge in recent years. Customers have been cutting orders as they cope with a stockpile of inventory, he said, but they’ll soon return to buying during the typically stronger second half of the year.
Intel shares suffered their worst rout Friday since October 2021, falling as much as 11%. The decline followed the company slashing its annual forecast Thursday and reporting steep drops in personal-computer and server chip revenue.
“We have laid out a multiyear path to the future and we are confident that it will be realized,” Gelsinger said.
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