Intel's stock took a nosedive before trading hours today due to lower-than-expected forecasts for the second quarter. Analysts had hoped for revenue between $13.57 billion, but Intel projected $12.5 billion to $13.5 billion, missing the mark. This indicates a significant setback for the semiconductor giant.

The company faces a tough challenge as more businesses invest in artificial intelligence (AI) technology, shifting away from traditional data centers and PC chips. While Intel has long dominated this market, competitors like Nvidia are leading in producing advanced AI components, leaving Intel struggling to keep up.

Despite efforts to address these issues, analysts remain skeptical about Intel's ability to bounce back quickly. Some even say the company is "profoundly broken," suggesting that major improvements will take years to materialize.

To counter these challenges, Intel plans to invest $100 billion across four U.S. states to expand its factories and has introduced a new AI chip to compete more effectively.

Intel's stock closed at $35.11 on Thursday, showing a modest increase of 1.77%. However, after the Q2 forecast announcement, it plummeted more than 7% in pre-market trading. This adds to the company's struggles, with a year-to-date return down by nearly 30%.

As Intel navigates this difficult period, investors and experts will closely monitor its ability to address challenges and adapt to the changing AI landscape. The success of its strategic investments and innovation will determine whether Intel can regain its position in the competitive semiconductor industry.