Intel's stock drops 30% overnight —company sheds $39 billion in market cap | As of now, Intel's market value is a fraction of Nvidia's worth and less than half of AMD's
Intel's stock drops 30% overnight —company sheds $39 billion in market cap | As of now, Intel's market value is a fraction of Nvidia's worth and less than half of AMD's
Tough times ahead.
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.
Intel should merge with Boeing
My guess is Intel's management is full of inflexible dead weight that doesn't want to adapt to the new reality that PCs are only going to become less and less relevant as a computing model. Like other companies that had established cash-cow businesses like Sears with its mail-order catalog, Kodak with film, Motorola with analog mobile phones, etc., current management doesn't want to jeopardize their positions by allowing a new business to dominate, and so the company is doomed to a slow death.
wow
There is absolutely no way intel is going under any time soon. They may drop more but it's almost certain that they will recover.
I don't understand a valuation that puts them under AMD given how poor amd's market share is in the gpu market (which intel is now a new valid competitor in for the budget space) alongside the fact that intel's cpu market share is higher than AMD by a large margin.
I'm saying all this as a huge AMD fan. I have a 5800x3d and a 6800xt. I made our work standard laptop be amd based as I set the standards for my organization in my work role. I know my choice is the minority choice. Even in datacenter intel has an overwhelming lead.
Maybe they shouldn't have fucked over all of their own people.
Fuck em
They also announced they are going to stop paying stock dividends starting Q4.
Back in ye olden days, you used to buy a stock largely due to its ability to regularly pay you back a dividend, as a more conventional kind of investment, before the more modern idea of 'buy low sell high' became the most prevalent investment strategy / market dynamic.
It took long enough for the market to wake up to it. They dragged their ass for what like 10 years without much real innovation. And everyone knew it the whole time. Then Apple ditched them. That alone should have been a huge sign. Apple does not fuck around. They definitely knew Intel had been rotting from the inside out.
rust giveth, and rust taketh away
They definitely deserve this. Still, I hope their fab business works out because we need another high end fab (especially a US based one). It's exorbitantly expensive, too much for anyone but an established player to enter the market.
These fucking idiots. All they had to do was pretend they gave a fuck about the chip debacle and play everything slowly. They couldn't even do that. They couldn't even pretend to give a fuck about anyone. Neither their customers nor their employees.
If they replaced the C-suite with the custodial staff, they would be in a significantly better position than they are now. Executives are always dumb as fuck, with very few exceptions. Pre-requisites for the job: narcisism, sociopathy and idiocy.
It's not everyday that I'm thankful that grandma didn't leave me $700,000 but today is one of those days
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...
Smart people saw this coming.
Sanctions were supposed to stop China's semiconductor industry. The opposite happened.
- glad I just went with AMD. Dodged a bullet.
- Man that 11 billion they just got from us, so hot.
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
Edit: Intel to Get $23 Billion in Government Grants & Loans Plus $25 Billion Investment Tax Credits, to Invest $100 Billion in the US, after Wasting $94 Billion on Share Buybacks in 15 Years
I think suspending the dividend is worse than the layoffs for INTC, since it used to be a boring boomer blue chip divvy type thing to hold and DRIP
Ugh, I got a fair return from buying to AMD right before Ryzen came out. I sold some of it and bought multiple different chip companies so now I have some AMD, some Intel, some NVDA. Oh well, it's not a huge amount but still sucks. I hope they can come back if only because AMD needs competition to keep them from becoming the evil that old Intel was. I was hoping Intel would also be a viable third GPU competitor, I like my Arc A770 for the price and I'm hoping they don't kill off the GPU division.
Fuck around and find out
I got an AMD 386sx33, dx4-100, Duron 1000, Athlon xp2200, (some Intel here, P4, Atom), then a 5600H now in a mini PC.