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.
When I had to flash my BIOS and pray that it didn’t brick my PC I cursed them, saying “Fuck Intel, I hope their stock plummets!”
You’re welcome everyone.
can you do reddit next please
Tiktok afterwards please.
Then all oil companies
Let’s do these before everything else
Then we move on to private equity firms
Alright, alright. This is getting out of hand.
We need to make a list and then do like a reverse Kantian calculus to figure out which ones are doing the most harm and start from the top in descending order.
Then all oil companies
Survey says, Gazprom! https://lemmy.world/post/18220754
Ticketmaster
Everyone’s acting like this guy said he’s taking requests.
Well we’re not all fucking witches here, I’m sure he’ll do something if someone gives him their firstborn.
Can you tell a guy first, I could have shorted
At least you didn’t invest all of grandma’s inheritance in Intel, just before it dropped.
That reddit thread is a gem. Funniest shit I’ve seen on WSB in a while.
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.
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.
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.
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
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.
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
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.
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
If you don’t know the difference between a resistor and a transistor, I’m not taking your advice on semiconductor companies
source: made it up
deleted by creator
Intel also released two generations of CPUs that just die under heavy loads.
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.
Seems pretty alive to me.
*save
If you can tell what the person means, there’s no reason to publicly correct their spelling or grammar.
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”.
But how else will I feel superior to a stranger on the internet?
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.
How is Intel’s GPU marketshare any better… Last I heard they were selling their chips at a loss
They are not doing better in the gpu marketshare. They are a new challenger in that space and are no where near getting the lead. The point I was making is that they are just getting into that space, and if they are successful at chipping away at nvidia’s giant high margin market share they can very possibly make a ton of money in that space.
Their GPUs however are fairly good price/performance for consumers, meaning they are building market share in that space. Like any business starting out at something they are losing money to gain market share. That’s how capitalism works today. You lose money to gain popularity until you get so much market share you can turn screws to make significant profits.
Intel’s bread and butter is CPUs. They are the majority market share in the highly lucrative desktop cpu, mobile cpu and datacenter cpu space.
SRIOV in the datacenter without restrictive / Prohibitive licensing costs
I thought qualcomm was the majority market share in the mobile cpu space?
Good catch, I meant laptop. Most end user systems provided today are laptops for the last several companies i’ve worked for.
It’s because the stock market is closer to a casino than a place where fair valuations of businesses are made.
Also, market cap is just the latest trade price times the total number of shares. It doesn’t mean that anyone is willing to buy or sell the entire business for that amount, just that some shares were traded at a price that extrapolates to that.
It’s kinda like getting an A on your first assignment in grade 1 and assuming that means you’re a straight A student and will maintain that until you finish your doctorate. Or getting an F and assuming you might as well just drop out.
The closest thing to reality market cap really says is that investors who are making current trades believe that AMD will surpass Intel at some point. Or that they aren’t comparing either company directly to the other and just go by feeling plus the price history. “I feel more confident in AMD today, therefore the price should be higher than it was yesterday. I feel less confident in Intel today, therefore the price should be lower than it was yesterday.” It doesn’t even really matter if yesterday’s price was accurate, it’s all just relative to itself and fed by fear and greed.
Preach. I’m just worried for when nvidia pops. The grumblings about the machine learning fad are starting to happen but that’s a company that is incredibly likely to lose 80% of revenue in 5 years once businesses see how the huge investments flop.
There’s some strange belief that chat bots being semi-coherent is going to turn into true AI and take over all the white collar jobs. The more popular chatbots become the poorer the data quality will be. It’s inevitable that all the bots posting on all the social media sites will poison the datasets especially as more and more turn to chatbots to generate content.
Peoples imaginations are running wild. I think if 2% of the use cases pan out it will be a wild success but ML is not new and entire divisions have been scrapped for failing to turn a profit (looking at Alexa, for sure.) When the pop happens the drop will be so significant the ripples may cause a recession all by itself.
Smart people saw this coming.
Sanctions were supposed to stop China’s semiconductor industry. The opposite happened.
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
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
I shorted them hard once. They stayed solvent longer than I could.
“The markets can remain irrational longer than you can remain solvent”
Brutal, nearly the lowest since 2008. Makes me want to buy in at this point.
The market does tend to overreact so this is possible a sign to buy low. I can’t be bothered to check the fundamenals but it seems unlikely that amd is a better investment long term. If you are not looking at least 5 years to the future stocks are a bad idea.
Fundamentals: Intel powers the US military industrial complex, they’ll weather this storm.
And the frank truth is, if things heat up on the Taiwan straight, TSMC is toast and Samsung won’t be able to pick up the slack.
It’s going to take 3d chess from China to put their hands in TSMC without US bringing in “democracy”. That factory is more strategic than oil.
It ain’t worth a nuclear war. Why do you think the feds are so focused on domestic manufacturing? The Arizona TSMC factory is just shipping workers from Taiwan it’s so dependent. I’d hate to see what the actual supply chain looks like.
AMD is super hot right now. Not in a good way.
I bought AMD at $8/share (and am still holding it), and I’m getting a similar vibe from Intel now…
I bought AMD at $8/share (and am still holding it)
Wow, I’d have dropped that hot potato ages ago.
I am glad I didn’t lol. Still not, the datacenter GPUs are something else, and so is their multi-chip design prowess.
OTOH: Boeing. Had the 737 Max bug been a one-off incredibly bad fuck up, they would have been a good buy. Then it turned out that that bug was just the first sign of many deep seated issues with their production process. Boeing 100% deserves everything they’re getting. Management skipped right over lawful, chaotic, and neutral evil and went into stupid evil, and decided that sacrificing QC/QA on aerospace equipment would be a great way to get returns for shareholders.
They didn’t skip those steps. The market just ignored the fact that they’ve been stepping through those options for the last 30 years because that’s what the market as a whole has been doing. As cliche and annoying as it sounds, this is exactly what late stage capitalism looks like. Once growth through sales becomes difficult, usually from approaching monopolistic size in a market, they only have two options left. They can either cut corners and headcount to save on operational expenses or they can decrease revenue growth. Considering the fact that the central thesis of our economy is the idea that infinite growth is not only possible but the only valid pursuit of any corporation it’s easy to guess what they’re going to do when faced with declining sales or any other detriment to growth.
Haha stupid evil
I’ll use that any time I think about politicians as well. Trademark that fast mate
I found Jim Cramer.
Don’t worry, tomorrow the market is closed!
Good move.
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.
I was going to make bank with NVDA then it started to fall. Lost half of my profits and then decided to sell everything. I’m glad I did. In going to wait for some good news before reinvesting.
rust giveth, and rust taketh away
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
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.
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.
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.
shoutout to the guy on wall street bets dunking 700k before it tanked to 30%
Wait, was he betting it would go up or down?
Just a regular stock buy, so up. Lost around 200k so far.
But he did say he was going to sit on the stocks for some years, so might get some back.
💎 🙌
Ironically, I suspect they would be a solid long term play right now.
If you bought the day before an earnings report with the premise being a long term hold, as the company stock was dropping, you would wait and buy after.
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.
Apple likes to control the entire ecosystem, and wanted to make their own processors to make them more efficient and produce less heat. They succeeded too, the M2 and M3 chips are incredible.
So I think they would have ditched anyone, but Intel probably also made it easier by being so bad. :)
more efficient and produce less heat
Which was impossible to do with x86 space heater. Maybe if Intel hadn’t sat idle and actually produced more efficient design. We could be reading about Apples own spin of x86 instead of ARM.
You are 200% correct, apple didn’t ditch Intel because Intel, apple did it because apple.
