Shares of Intel plunged as much as 18% Friday to $49.50 per share after the company said that the release of its next-generation chips would be delayed by six months.
The announcement came during Intel’s second-quarter earnings results, released Thursday. The company reported earnings per share and revenue that beat Wall Street’s expectations.
He continued: “We have identified a defect mode in our 7nm process that resulted in yield degradation. We’ve root-caused the issue and believe there are no fundamental roadblocks, but we have also invested in contingency plans to hedge against further schedule uncertainty.”
Read more: Jason Tauber is crushing the market this year by finding the tech companies enabling the biggest disruptions. He told us how he’s adjusting his game plan as valuations soar – and 7 of his top picks today.
Intel had previously said that its 7-nanometer chips would launch in 2021.
In addition to the delay in releasing the 7-nanometer chips, Intel offered a weaker-than-expected guidance for its third quarter earnings results. The company foresees adjusted earnings per share of $1.10 on $18.2 billion in revenue, where analysts had expected slightly higher EPS.
Intel had risen 1% year-to-date through Thursday’s close.
Read more: Bernstein says buy these 13 dividend-rich stocks built to capitalize on a trend not seen in 65 years
Markets Insider