An announcement by Intel Corp executives about the postponement of the release of the new Intel chip has led to the fall of the company’s stock price. According to Intel Corp executives, the new chip won’t be out till the next year. The move is as a step to wade of competition from rivals who are making progress in the field.
Intel Corp is the world’s second largest semiconductor chip maker after Samsung. The company reported very positive results for the second quarter of the year and was positive that they will beat their total goals by the end of the year.
Intel planned to introduce its new 10-nanometer chips this year but the release is set to happen in the course of 2019. The chips will be in personal computers that will be sold during the course of 2019. Server chips will be released after this.
Intel said that they were focusing on improving current semiconductor designs in order to remain relevant and competitive in the market.
Intel Corp shares price was up by 13% since the turn of the year but that changed after the announcement.
Although the announcement has resulted in a dip in the stock market, Intel Corp has managed to announce really good figures in terms of revenue and profit. Intel said that revenue since the turn of the year is at a staggering $18 billion which is slightly above what many analysts had calculated. The company increased their target figure for revenues for the whole year to $62 billion.
The company is under new management ever since its Chief Executive Officer Brian Krzanich was fired for engaging in an extra-marital affair. Analysts had projected a downward trend due to the gap in its ranks but the figures have shown otherwise.
In terms of competition, Intel Corp is way ahead of its rivals. The only challenge it faces is the need to keep up with demand of its products since sales of personal computers with Intel chips is projected to go up in the upcoming future.