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.
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
But surely the desktop PC market is going to bounce back soon
Any day now
They’re still around, and will be for business, gaming etc for a long time. The desktop isn’t going away.
I never imagined a world where Intel was the little fish. Wild
It’s gotta be temporary. It’s intel.
The lawsuits haven’t even started. This is very very bad for them.
Complacency does that to you
Nokia knows
Time to buy?
I’m pretty sure the US gov views them as too big to fail. Surely they can’t mess up Xe, Falcon Shores, and the foundry business, right?
RIGHT!?
I bought AMD at $8 a share (and still hold it, and Xilinx that got folded into it), and I am buying some Intel soon.
The price is right.
I may be an idiot, but I was right once.
They could, but the US government has a strong interest in keeping them around. Not only do they do a huge amount of development, and not just on CPUs, but they also have the largest share of government purchasing by far.
Yep maybe but I think the difference of IT and banks is that if your research and innovation department get defunded you are basically selling the same shit year over year but competitors are not.
My MSCI World ETF shares lost about 4% in a day. yesterday. Does this have anything to do with this shitshow?
Doubt it. The ETF holds 1500 large and mid-cap companies across 23 developed countries. It doesn’t hold enough Intel shares.
Wasn’t the market down overall yesterday.
Yes, it was. Tech led the downturn yesterday, but Nasdaq was only down like 2%. The “world” stocks (ex-US) are more volatile than the US. In my opinion (and Warren Buffett’s), they are not worth investing in as ETFs. Only particular companies. The markets are genuinely worse than in the US.
- glad I just went with AMD. Dodged a bullet.
- Man that 11 billion they just got from us, so hot.
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.
The stock market is the least stupid way to be addicted to gambling but it’s still one of the dumber addictions to develop.
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
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.
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.
Will nvidia buy Intel, like AMD bought ATI?
Nvidia doesn’t want to be in the foundry business. They actually like having to make other foundries compete for their business.
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.
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…
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.
yet
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.
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.
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…
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.
And to think I grew up at a time when Intel reigned supreme. My my.
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.
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.
This will happen to the whole tech industry. Once people realise that Moores law is dead. Intel is just the beginning and „A.I.“ will not safe them.
*save
If you can tell what the person means, there’s no reason to publicly correct their spelling or grammar.
But how else will I feel superior to a stranger on the internet?
Hard disagree. Common mistakes ruin grammar because other people will adopt these. And when written language becomes ambiguous due to people not using proper grammar, that’s a very important foundation of “words have no meaning” fuzziness employed by populists, and in effect dumbs down people.
I said “publicly.” I wasn’t commenting on the fact that you corrected someone, but the fact you did so publicly.
The mistake is public. This is where people see it and should also see the correction. The fact that you get your knickers in a twist over a simple word correction, is worrysome. It’s not like I said “lol u so dumb OP”.
Intel also released two generations of CPUs that just die under heavy loads.
You seriously think we’re going to slow down on infrastructure?
The effort required to keep increasing resistors in a chip is just too high at some point. And the power required to run all the chips is becoming unsustainable. Besides that, hardware companies are way over valued if you look at earnings / market cap
Moore’s Law is about transistors, not resistors. Tell me you know nothing about hardware without saying you know nothing about hardware.
source: made it up
If you don’t know the difference between a resistor and a transistor, I’m not taking your advice on semiconductor companies
Seems pretty alive to me.
If I got a snickers every time I heard moore law is dead I’d be obese.
Any moment now, any moment.
It is dead.
The only reason it seems like it’s not is because AMD server CPUs are just getting physically larger and larger
Check out 3D stacked ram for example. Moores law isn’t about some size measure.
And now I have to eat another snickers…
It’s literally defined as the number of transistors doubling in a chip. It doesn’t at all mention the size or density.
Well yes exactly.
Edit: you just showed the law is still alive and kicking:
It is dead.
The only reason it seems like it’s not is because AMD server CPUs are just getting physically larger and larger
Fair enough.
Though if density is irrelevant then the entire thing is meaningless.
Should instead be talking about how large of a silicon wafer can be produced.
Or something like CPU power per dollar, but that’s just me.
As every gambler knows: A trend is your friend.
And we live in a casino economy.
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.
So, I should invest now for cheap and when they inevitably bounce back, sell?
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.
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 :)
Maybe they shouldn’t have fucked over all of their own people.
Fuck em
rust giveth, and rust taketh away
