The Intel share is up just 2% for the year. It has lagged far behind rivals, as AI darling Nvidia has jumped 30% while AMD stock has surged 34%. Intel trades at a 12-month forward price-to-earnings ratio of 42.

The layoffs, which were one of new CEO Lip-Bu Tan's first big moves since he took over in March, are meant to make things run more smoothly and cut expenses. Intel lost $2.9 billion in the second quarter,

Intel Corp. is shedding thousands of workers and cutting expenses as its new CEO works to revive the struggling chipmaker’s fortunes