Intel reported second-quarter results on Thursday that beat Wall Street expectations on revenue, as the company's new CEO Lip-Bu Tan announced significant cuts in chip factory construction. The stock fell about 5% in extended trading. Here's how the chipmaker did versus LSEG consensus estimates:

By Jonathan Stempel (Reuters) -A federal judge dismissed a lawsuit accusing Intel of defrauding shareholders by concealing problems in a business where it manufactured chips for outside customers, leading to a $32 billion one-day plunge in its market value.

Back in April, Intel Corp.’s newly appointed Chief Executive Officer Lip-Bu Tan told investors on his inaugural earnings call that turning around the troubled chipmaker would take time.

Intel shares plunged Friday, a day after the chipmaker reported mixed results amid uncertainty about its ability to engineer a turnaround.

This news follows layoffs of 15% last year and a memo from Tan earlier this year that referenced “critical changes [that] will reduce the size of our workforce.” (At the time, Bloomberg reported that Intel planned to cut over 20% of its staff, but the figure was never confirmed.)

Intel shares sank 8% on Friday after the company warned of exiting chip manufacturing if it fails to secure a major customer, a potentially drastic move by the new CEO to cut spending and revive the struggling American icon.

Despite beating second quarter revenue expectations, the tech company faces analyst discomfort over its layoffs and possible manufacturing cancellations.

Intel Corporation's latest Q2 earnings have embedded several bombshell updates to its turnaround strategy. Click here to find out why INTC stock is a Hold.

Intel’s stock dropped 9% after the chipmaker said it would slash foundry costs in its latest attempt to turnaround its struggling business.

Loop Capital initiates Intel stock at “Neutral” as the semiconductor firm is stuck in a “catch-22” situation. Wall Street at large remains bearish on INTC shares as well.

Intel (INTC) stock is on the decline after the chipmaker reported earnings. CEO Lip-Bu Tan highlighted cost-cutting efforts and former Intel CEO Pat Gelsinger's shortcomings, rather than indicating the company is working to return to being a tech innovator.