Investors driving shares down despite Intel's 'pragmatic' moves

It took Intel a while to join the smartphone revolution, and Chairman Andy Bryant reportedly admitted Thursday that he was “personally embarrassed that we seemed to have lost our way.” Can the chip giant find its way back?

At his first shareholder meeting Thursday, CEO Brian Krzanich spoke about “pragmatic” moves the company is making, but shares of the Santa Clara company are down about 5 percent this morning. Krzanich talked of, among other things: allowing hardware makers to choose between the Windows, Chrome and Android operating systems, and taking advantage of lower-priced tablets to drive demand for its chips.

Intel also said it is opening its chip foundry to competitors, something Raymond James analyst Hans Mosesmann applauded. “Wow,” he reportedly said in a note to clients. “It’s very refreshing to see Intel make this move and could have important implications for the industry.”

Krzanich also said he thought the PC industry was “declining but … beginning to show signs of stabilization,” according to Reuters. However, global PC shipments are expected to fall next year, and the company forecast that its revenue will be flat.

Intel shares are down $1.26 to $23.97, or 4.99 percent, as of this post.

 

Photo of Intel headquarters in Santa Clara from Mercury News archives

Levi Sumagaysay Levi Sumagaysay (4172 Posts)

Levi Sumagaysay is editor of the combined SiliconBeat and Good Morning Silicon Valley. She also helps take care of SiliconValley.com, the Mercury News tech website. Email: lsumagaysay@bayareanewsgroup.com