Intel (INTC) shares fell 6.1% on Thursday due to concerns over delays in the construction of two new semiconductor fabrication plants in Magdeburg, Germany. Originally scheduled to begin operations by 2027, the project's timeline is now uncertain, sparking investor worries.
These concerns come amidst Intel's broader restructuring and cost-cutting initiatives, raising doubts about the company's commitment to its ambitious expansion plans.
The decline in Intel’s stock highlights its contrasting performance with competitors, as Intel's shares have dropped nearly 60% in 2024, while many semiconductor stocks have surged due to optimism around AI technologies.
This underperformance is further underscored by the Philadelphia Semiconductor Index, which has risen over 20% this year.
In comparison, rival Taiwan Semiconductor Manufacturing (TSMC) has made significant progress, having just begun construction on its own $11 billion facility in Dresden, Germany.
These concerns come amidst Intel's broader restructuring and cost-cutting initiatives, raising doubts about the company's commitment to its ambitious expansion plans.
The decline in Intel’s stock highlights its contrasting performance with competitors, as Intel's shares have dropped nearly 60% in 2024, while many semiconductor stocks have surged due to optimism around AI technologies.
This underperformance is further underscored by the Philadelphia Semiconductor Index, which has risen over 20% this year.
In comparison, rival Taiwan Semiconductor Manufacturing (TSMC) has made significant progress, having just begun construction on its own $11 billion facility in Dresden, Germany.