Renowned manufacturer of processors for personal computers, Intel, saw its stock drop to the lowest point in three months on Friday, following a bleak outlook for the current quarter, which suggests difficulty in reaching to the top of the semiconductor market.

Intel claimed that it made sales up to $ 13 billion in the second quarter, as of Thursday.

Even if the CEO Pat Gelsinger revitalizes the company, the outlook cautioned that it would require more time and resources. Known for being a top chipmaker in the world, Intel is now falling behind among competitors like Nvidia and Taiwan Semiconductor Manufacturing in areas concerning sales and technological know-how.

It is said that the CEO is optimistic that the company is headed towards the right direction both now and down the road. It is moving closer to being a ‘foundry’ or a company that offers external clients chip production that is outsourced, the CEO believes.

Its shares dropped 9.2 percent to $ 32.88 at the close in New York, which marked the biggest one-day decrease since January. By Thursday’s close, the stock had already been down to 30 percent this year, making it the second worst performer on the Philadelphia Stock Exchange Semiconductor Index.

Leaving some reasons behind, the chip maker's profit for the first quarter was 18 US cents per share, on revenue of $ 12.7 billion. Analysts predicted $ 12.7 billion in revenue and a profit of 13 US cents per share.

The company’s chief financial officer did claim that the business had not been doing well as expected, but he predicted an uptake later in the year. Also, its packaging operations failing to produce enough components, made the company unable to meet the demand for processors used in new AI-enabled PCs.

It is disclosing earnings for the first time, with a new corporate structure that displays the financial performance of its manufacturing operations. Gelsinger believes that the strategy is key to improving the effectiveness and competitiveness of operations.

It had revealed its financial status to investors of its industrial network earlier this month.

Sales for Intel Foundry, the newly formed manufacturing division, were $18.9 billion in 2023 as opposed to US$27.5 billion in the year before.

Sales of PC-related chips for the business totaled US$7.5 billion, versus an average forecast of US$7.4 billion. According to Wall Street forecasts, its data center and artificial intelligence (AI) segment generated revenue of US$3 billion.

Due to the fact that it is releasing an updated version of the Gaudi chip, which is its response to Nvidia's wildly popular AI accelerators, Intel is still upbeat about the second half of the year.