Intel Stock Is Sliding: What's Going On?

Intel Corp INTC shares are volatile Wednesday morning after the chipmaker updated its long-term strategy, reiterated its forward guidance and cut its dividend.

What Happened: Intel reaffirmed its first-quarter revenue guidance of $10.5 billion to $11.5 billion. The company also said it expects a first-quarter loss of 80 cents per share, or 15 cents per share on an adjusted basis. 

As a result of its cost-cutting initiatives, Intel expects to deliver $3 billion in cost savings in full-year 2023. 

Intel also slashed its quarterly dividend from $0.365 per share to $0.125 per share ($0.50 annually). The dividend will be payable on June 1 to stockholders of record on May 7. The company said the decision to decrease the quarterly dividend reflects the board's deliberate approach to capital allocation and better positions the company to create long-term value.

"Prudent allocation of our owners' capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine. We remain on track to deliver five nodes in four years and continue to expand the IFS (Intel Foundry Services) customer base," said Pat Gelsinger, CEO of Intel.

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INTC Price Action: Intel has traded between $52.51 and $24.59 over a 52-week period.

The stock was down 1.04% at $25.79 at time of publication, according to Benzinga Pro.

Photo: courtesy of Intel.