Intel CEO Gelsinger acknowledges investors' skepticism amid chipmaker's ongoing struggles.

• Pat Gelsinger, Intel CEO, acknowledged the "skepticism" expressed by the market regarding the company's turnaround efforts.
• Over the past month, Intel experienced its poorest stock day in more than half a century due to a harsh earnings report.
• CNBC reported on Friday that the company was working with activism defense advisors.

Since the chipmaker's disastrous earnings report, it has been a "difficult few weeks" for CEO Pat Gelsinger, who stated on Thursday that the company is working diligently to alleviate investor concerns.

"Gelsinger acknowledged the skepticism he's faced from the market in a chat at Deutsche Bank's technology conference in Dana Point, California, but expressed confidence in his company's ability to overcome it."

Following the release of its quarterly earnings report, Intel's stock price dropped 26%, marking its worst day on Wall Street in over 50 years. This year, the shares have fallen 59%, trading close to their lowest point in over a decade.

Despite facing immense pressure in recent years, the company has persisted in investing billions of dollars in developing a chip fabrication business, while simultaneously losing market share in its core PC and data center business and failing to achieve significant progress in artificial intelligence.

On Thursday, Gelsinger stated that the company is still facing challenges with AI-driven issues in its server business. However, he expressed hope for a better future.

"We see the finish line in sight," Gelsinger said.

Intel's shares surged by more than 4% on Thursday, mirroring the broader tech industry's upward trend.

Intel has enlisted Morgan Stanley as advisors to help it deal with scrutiny from activist investors, according to CNBC. Gelsinger did not discuss the activist issue or the recent departure of industry veteran Lip-Bu Tan from Intel's board, Reuters reported. Tan disagreed with other directors on the necessary steps the company should take.

Intel's CEO acknowledged that shareholders are justified in their dissatisfaction with the company's performance, as the company announced earlier this month that it would be laying off 15,000 employees and exploring cuts in its portfolio. Gelsinger stated that he believed these efforts would ultimately be successful, citing "signals" from external foundry customers in the pipeline.

In the most recent quarter, Intel experienced a $1.61 billion net loss, a significant reversal from the $1.48 billion net income it reported in the previous quarter, and its revenue also fell short of expectations.

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