Investors Are Piling Into Intel Stock Wednesday Morning: Here's Why

Intel Corp META shares are trading higher Wednesday following a report indicating the company plans to announce job cuts this week.

What To Know: Intel is preparing to announce plans to cut 20% of its workforce this week as part of a new restructuring, according to Bloomberg.

A person familiar with the matter reportedly said the move aims to help streamline management and rebuild a culture driven by engineering.

Intel announced plans to slash approximately 15,000 jobs last year in an effort to drive cost savings across its business. The new round of layoffs comes after CEO Lip-Bu Tan took over last month. He referenced previous workforce reductions in an inaugural letter to shareholders.

Tan has been tasked with turning around Intel, which has lost ground to competitors in recent years, falling behind major players like Nvidia in the AI race. The Intel CEO said last month that the company needed to replace engineering talent, strengthen its balance sheet and improve manufacturing processes. He noted that the turnaround will take time and suggested that it wouldn’t be easy.

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Intel is due to report financial results for the first quarter after the market close on Thursday. Analysts expect the chipmaker to report earnings of one cent per share on quarterly revenue of $12.3 billion, according to estimates from Benzinga Pro.

Barclays maintained an Equal-Weight rating on Intel this week ahead of earnings, lowering its price target from $23 to $19. Analysts at Bernstein also cut their price target on Intel on Tuesday from $25 to $21 and maintained a Market Perform rating.

INTC Price Action: Intel shares were up 5.69% at $20.62 at the time of publication Wednesday. The stock is still down about 43% over the past year, according to Benzinga Pro.

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