Intel slashes dividend by over 65%, to 12.5 cents
Intel CEO Pat Gelsinger pictured during the ‘Chips for health’ event at the Grischa Hotel at the World Economic Forum in Davos, Switzerland, on May 24, 2022.
Eric Lalmand | Belga Mag | AFP | Getty Images
Intel cut its quarterly dividend by more than 65%, from 36.5 cents to 12.5 cents, the chipmaker announced Wednesday, weeks after the company implemented a wide-ranging set of cost cuts.
Intel CEO Pat Gelsinger said on a call with analysts that the company’s board was cautious in weighing the first dividend cut since 2000. He added Intel intended to resume growing the dividend “over time.”
“The board and I continue to view the dividend as a critical component to the overall attractiveness of Intel,” he added.
Intel shares were largely flat in premarket trading Wednesday after the news.
Gelsinger insisted on the call that both he and the board remained committed to maintaining a competitive yield. Intel’s dividend yield is now 1.9%, based on Tuesday’s closing price, down significantly from its prior yield of 5.6%.
The dividend will be payable on June 1. “Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine,” Gelsinger said in a press release.
The company also reaffirmed its recently issued outlook for the first quarter of 2023. Intel guided to a 15 cent non-GAAP loss per share but didn’t provide full-year guidance, citing economic uncertainty.
Intel’s most recent results, a top- and bottom-line miss and a $664 million net loss for the fourth quarter of 2022, sent its share price sharply down. “No words can portray or explain the historic collapse of Intel,” Rosenblatt analyst Hans Mosesmann wrote after the earnings report.
Intel’s stock has fallen nearly 60% from its 2021 high, a reflection of both a challenging PC market and of company-specific issues, including a surplus of chips and underutilized factories.
The company said it aimed to deliver $3 billion in cost savings this year, in part through compensation cuts. Intel’s fourth-quarter loss was the chipmaker’s largest since 2017.
— CNBC’s Michael Bloom, Jordan Novet and Kif Leswing contributed to this report.
Nvidia founder and CEO Jensen Huang looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025.
Brendan Smialowski | Afp | Getty Images
Nvidia on Tuesday said its tech remains a generation ahead of the industry, in response to Wall Street’s concerns that the company’s dominance of AI infrastructure could be threatened by Google’s AI chips.
“We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google,” Nvidia said in a post on X. “NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.”
The post came after Nvidia saw its shares fall 3% on Tuesday after a report that Meta, one of its key customers, could strike a deal with Google to use its tensor processing units for its data centers.
In its post, Nvidia said its chips are more flexible and powerful compared with so-called ASIC chips — such as Google’s TPUs — which are designed for a single company or function. Nvidia’s latest generation of chips are known as Blackwell.
“NVIDIA offers greater performance, versatility, and fungibility than ASICs,” Nvidia said in its post.
Nvidia has more than 90% of the market for artificial intelligence chips with its graphics processors, analysts say, but Google’s in-house chips have gotten increased attention in recent weeks as a viable alternative to the Blackwell chips, which are expensive but powerful.
Unlike Nvidia, Google doesn’t sell its TPU chips to other companies, but it uses them for internal tasks and allows companies to rent them through Google Cloud.
Earlier this month, Google released Gemini 3, a well-reviewed state-of-the-art AI model that was trained on the company’s TPUs, not Nvidia GPUs.
“We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs,” a Google spokesperson said in a statement. “We are committed to supporting both, as we have for years.”
Nvidia CEO Jensen Huang addressed rising TPU competition on an earnings call earlier this month, noting that Google was a customer for his company’s GPU chips and that Gemini can run on Nvidia’s technology.
He also mentioned that he was in touch with Demis Hassabis, the CEO of Google DeepMind.
Huang said that Hassabis texted him to say that the tech industry theory that using more chips and data will create more powerful AI models — often called “scaling laws” by AI developers — is “intact.” Nvidia says that scaling laws will lead to even more demand for the company’s chips and systems.
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