Intel’s stock dropped around 30% overnight, shaving some $39 billion from the company’s market capitalization since rumors of a pending layoff first emerged. The devastating results come after the chip giant reported a loss for the second quarter, complained about yield issues with the Meteor Lake CPU, provided a modest business outlook for the next few quarters, and announced plans to lay off 15,000 people worldwide.
When the NYSE closed on July 31, Intel’s market capitalization was $130.86 billion. Then, a report about Intel’s massive layoffs was published, and the company’s market capitalization dropped sharply to $123.96 billion on August 1. Following Intel’s financial report yesterday, the company’s capitalization dropped to $91.86 billion. Essentially, Intel has lost half of its capitalization since January. As of now, Intel’s market value is a fraction of Nvidia’s worth and less than half of AMD’s.
As Intel’s actions look rather desperate, analysts believe that Intel’s challenges are existential. “Intel’s issues are now approaching the existential,” Stacy Rasgon, an analyst with Bernstein, told Reuters.
rust giveth, and rust taketh away
I bought an Intel last time because I got AMD the time before that and they had issues that I can’t recall right now. Security or they had to slow it down?
Luckily, I’m still on a 11th Gen. I guess I’m going back to AMD when I decide to upgrade again.
Intel has had more security stuff that slowed it down than amd.
Amd had some usb dropout issues but otherwise has been pretty solid for Ryzen.
Skylake myself, after a FX 9590 as a last ditch effort.
I’ll never get a P/E core CPU. Windows 11 fucked with virtualization and now the scheduler somehow breaks VMWare, all because my Desktop CPU somehow needs to be as power efficient as a laptop CPU when idle cores already hardly consume power. And spoiler: Otherwise I want to use the power I bought.
New build will be AMD, and only when the old one starts breaking. Now that I think about it, I should research if I can move BitLocker drives to a new system.
You can move the drives. Just have your recovery key/password in hand. No problem.
Fucking good! I know it’s not the primary reason, but it’s by high time that people see laying off 15k people as a bad thing and the company suffering for it.
I fear it’s wishful thinking that the layoffs are what made the stock tank. It’s certainly never hurt anyone else…
layoffs are what made the stock tank
Yeah, it’s usually the opposite: Layoffs by themselves usually make the stock go up, as the company is reducing their expenses.
The issue with Intel is that they announced layoffs combined with a bad earnings call, so it’s a sign the company isn’t going so well.
I think it made an already bad situation worse.
I think the AI thing has really caught them off guard. There’s a gold rush and they have no real shovels to sell.
Intel’s only hope now is for the Chinese army to go for a holiday in Taiwan. Their competitors are hugely reliant on TSMC. That’s been brewing forever though, and hopefully will continue to not come to anything. The last thing the world needs right now is more fucking war…
The layoffs were announced at the same time as Intel’s Q2 financial results: https://www.intel.com/content/www/us/en/newsroom/news/actions-accelerate-our-progress.html
Yep, that’ll do it.
They’re not even bothered by the fucked up chips.
I was gonna say… how is it not this? Weird world.
I’m guessing those chips are a tiny fraction of Intel’s revenue.
AMD have been eating their lunch on more than just gaming PCs.
yet
The actions we are taking will make Intel a leaner, simpler and more agile company.
Oof, now agile bullshit talk is infecting the lingo of the c-suite and being used as justification to do layoffs. I should’ve seen that coming, though I must’ve skipped the portion of the agile manifesto that said to choose Lamborghinis over employees.
Will nvidia buy Intel, like AMD bought ATI?
Regulators wouldn’t allow that to happen.
Don’t be so sure about that.
Yeah, it very much depends on who is in charge after November.
There’s a whole world outside of the US, you know.
Huh? We’re discussing the merging of two US companies. So I’m not sure what you’re going on about. Unless you honestly think the EU (the only ones that could even try) would try to over rule the US about two of its own companies. ROFL
Yeah it’s not like Australia can stop them, only force the sale of their Austrian branches. And while that may affect neighboring countries like Croatia and Antarctica it won’t stop the fact that the majority of the company is in one of the Unions of States of America
Yes? Like they regularly do?
The US, EU, and UK all took issue with Nvidia trying to buy ARM.
The UK and EU had to approve Microsoft buying Activision.
The US is not the only country in the world.
I am sure about that.
Pretty much everyone was against them buying ARM. Imagine if they bought Intel.
First of all, I just want to acknowledge how humorous the point you’re making is given your name, Zek.
Second, I hear you. What I’m saying is that in the states we have seen a disturbing lack of interest in trust busting over the past 20-30 years, and it’s led to some ridiculous monopolization in some markets. Tech is definitely one area that suffers from this. You’re right that EU regulators could push back on this if they wanted to, but think about what that might mean if nvidia/intel decided to play hardball. We are presently in a golden age of AI where nvidia’s products are basically the mainstay of the entire market…it could really set the EU back competitively if they chose to refuse those products at this particular juncture. I think they would face enormous pressure to simply accept the deal, in this hypothetical.
Nvidia doesn’t want to be in the foundry business. They actually like having to make other foundries compete for their business.
I wonder if that guy who bet his inheritance from WallStreetBets is ok…
As someone with no inheritance now or ever, it’s hard for me to imagine it has anything but fuck around money. I’m sure he’s fine.
Like he’ll be fine but psychologically thats gotta be tuff. Shoulda thrown it in index funds or some guranteed instrument
SOXX
Smart people saw this coming.
Sanctions were supposed to stop China’s semiconductor industry. The opposite happened.
Sanctions were never supposed to stop china’s semiconductor industry. They were to stop/slow down China from acquiring chips short term. This is quite a strawman argument.
They didn’t slow China.
Again, sanctions were on chips and import lithography. They have lots of trouble importing Nvidia chips, or at least more cost. Of course the country where a lot of chips are made will continue making chips. But while Taiwan was putting 3nm chips in phones a year ago, China is producing 5nm headlines, chips on mass scale yet to be seen.
What did people expect, China to go back to the stone age?
Intel doesn’t even make 5nm chips. SMIC is making 5nm chips less than 2 years after the sanctions that were meant to stop at 14nm.
You can spin this all you want.
Intel? The company that’s been failing for 5 years and lost 30% of it value in one day? That Intel?
Ni hao, comrade.
The one that ran-off with taxpayers’ money, yes.
China is definitely going to replace the US as the next empire if they play their cards right. It just sucks that the population is so socially oppressed to the point it may break them if they encounter an adverse phenomenon they can’t adapt to.
Which population is socially oppressed? I understood it as the West’s but I need to confirm who you meant.
Both fo sho
The moment Arm decided it should follow the Huawei ban, China started to invest in their own silicon at a staggering rate. After all, Apple already proved you can start a CPU design from scratch and be fine while Risc-V already offered a royalty free architecture to base their work off.
I know GamersNexus has also covered Chinese CPUs based on x86. I forget the details, maybe AMD let them license their IP?
if your internationally sanctioned IP suddenly means a lot less, what is the US going to do? sanction them?
Well, the purpose of this project is independence from US silicon and Arm. The purpose isn’t for international export.
that’s the point, there is nothing the US can do
And people will continue to buy the 14900k and have the shocked pikachu face.
🙄 not everyone is a cs nerd. Jesus some good victim blaming here lol
Weird cope but okay
They aren’t victims they’re rubes lol
Since the 5800X3D It’s been known that AMD delivers similar or better performance than Intel’s top-of-the-line chips with far lower power usage and cheaper prices.
Knowing that why would anyone buy the inferior product?
More than that, for years it has been eating more and more watts and the electricity prices went up… But still , most simp for Intel 💀
Well a lot of products have these things in them and a lot of people have no clue they are getting sold a defective product. This is all on intel, do not blame the customer because the big corporation is selling defective goods.
It’s not everyday that I’m thankful that grandma didn’t leave me $700,000 but today is one of those days
And some moron on Wallstreetbets just invested his $700k inheritance in shares yesterday. He’s -200k rn
As long as the jackass doesn’t sell, they’re solid.
I had a roommate who invested, when his stuff went down more than 5% he’d sell it, “Don’t wanna be too risky,” he’d say, unaware that he was breaking the cardinal rule of investing…
Then, “Omg it’s up again, I better buy high before it goes higher!” then repeat pattern A again.
Moral of the story, if you actually believe in a stock, unrealized losses are not something to react to. Or do, and become a warning tale told to others, ha. Them -5% hits add up QUICK.
Wow I am glad I only lost 10k and called it expensive stock market crash course. Apparently minute trading is not that easy
And that person is waiting for recovery, classic move. You do not lose until you sell am I right
I lost a grand myself n was mad about it lol
I am not exactly super good with money to be honest, recently I bought like full set of apple pro devices and now I am thinking how to get liquidity for UV skincare and clothes, I desperately need clothes, and body laser and several plastic surgeries and… yeah.
But I learned something from all these sprees I hope. It’s that I am not rich and shouldn’t behave like I am. I may be slightly stupid tho, in an adhd way.
The stock market is the least stupid way to be addicted to gambling but it’s still one of the dumber addictions to develop.
When you ain’t got nothing, you got nothing to lose bud. That’s where I’m at in this moment. If I lose every penny I have I’m still poor. If I don’t, maybe I can get a start on a damn house or something.
Food stamps or Ferrari. Sounds like you already have the former
I do not. I could probably qualify though.
Unless you short. Then you can be -200k!
Oh no I don’t play games with money I don’t have. I’m ok losing what I already have though. Beats a lottery ticket.
For real. At least the odds aren’t explicitly against you like casinos.
Except unlike casinos, there are breakers in place to prevent crazy jackpot earnings. Don’t expect to 10x your money in a day… Or month.
Expect? No.
Possible? With trading in puts and calls options definitely.
Still stupidly risky gambling where you loose most of the time? Absolutely
And to think I grew up at a time when Intel reigned supreme. My my.
I grew up in an era where IBM reign supreme.
A decade ago, it dipped to 1990s level but now it’s pretty up there in value again.
I don’t understand tech company stocks at all.
If you consider inflation, it makes more sense. IBM is nowhere near it was before
Yes, it seems like people always forget about inflation. Okay yes your one milion will be two millions in 14 years at 5% yearly but it will be worth only 1.25 million corrected for inflation so you just made 25% over 14 years. And that’s for just 3% year to year inflation.
So companies must at least grow by inflation rate to stay afloat.
Inflation is a word that haunts me to be honest. It is 8% here right now.
Oh how the mighty have fallen
I can still recall my first PC, I used to love smashing the turbo button. No fucking clue what it did, but it sure was fun to press!
Best button ever!
It slowed down the CPU.
The first pc I bought had a Cyrix processor cause I couldn’t afford Intel.
Exactly, everything was measured by how well Intel did, they were the undisputed standard bearer.
After how horribly they handled the whole hardware defect scandal with their 13th and 14th gen i Series processors, this is 100% deserved.
Intel is a cautionary tale of what happens when you allow bean counters who care more about EBITDA than their customers and staff to run the show.
This sounds like a modern day version of the Schlitz mistake back in the seventies where they cut the quality so much, so fast, that the formerly largest brewery in America became a worthless brand that nobody trusted.
The b-school lesson from this was to drop the quality of your product more slowly so people wouldn’t notice.
I figured no big company would ever suffer consequences from shitty product ever again because they’d figured out the drip instead of the open floodgates.
I hope more companies get to enjoy this fate, especially food producers.
The corruption drips slowly inside as well.
Maybe they shouldn’t have fucked over all of their own people.
Fuck em
So, I should invest now for cheap and when they inevitably bounce back, sell?
I bought some more; stupid me thought it would keep going up (up 15%), then it bombed.
Don’t try to catch a falling knife
But Ive had success in the past, just look at these cool scars as proof :)
Yeah, go for it 😎
I think you’re pretty much guaranteed a return if you buy on Monday or Tuesday. It’s literally free money.
Nothing ever goes wrong taking “free money” advice
I make sure to take all my financial advice from strangers on the Internet. Nothing could be safer.
But think about all those stock buy backs.
Didnt they spend 40 billion last ten years?
How much is federal government giving them?
Asking for a friend.
Disgusting welfare queens
More than that, for years their CPUs have been eating more and more watts and the electricity prices went up… Just keep them on par with AMD CPUs… But still , most default to Intel…
