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.
And to think I grew up at a time when Intel reigned supreme. My my.
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.
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.
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.