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(Original title: Intel's stock price recorded its biggest drop in more than 40 years)

Intelshare priceThe stock fell 26% to $21.48 on Friday, wiping out about $32 billion in market value. It was the biggest one-day drop in the stock since at least 1982.

Earlier, Intel's latest second-quarter financial report for fiscal year 2024 showed that its revenue was $12.8 billion, a year-on-year decrease of 1%, and its quarterly net loss reached $1.6 billion. Its net profit in the same period last year was $1.5 billion, a year-on-year loss. The company will start from the fourth quarter of 2024Fiscal quarterIntel has suspended dividend payments for the first time in 32 years. Intel CEO said that the second quarter's financial results were still disappointing and the trend in the second half of the year was more challenging than expected. In addition, Intel also announced that it would lay off 15% of the company's employees, a total of about 15,000 people. This is the largest layoff in Intel's history.

The company on Thursday forecast third-quarter revenue of $12.5 billion to $13.5 billion, compared with analysts’ average estimate of $14.38 billion. Intel expects a loss of 3 cents per share excluding special items, while analysts expected earnings of 30 cents per share.

After the results were announced, several major banks lowered their target prices. Morgan Stanley and TD COWEN lowered Intel's target price to $25, Deutsche Bank lowered Intel's target price to $27, and Jefferies lowered Intel's target price to $28. In addition, S&P put Intel's rating on the negative credit watch list.