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.
Ugh, I hope Loongson becomes competitive soon. If AMD gets a monopoly, cpu technology is going to get stagnant. And not decrease in cost.
It’s true, but Intel fucked around for years and now they’re finding out. I’m happy to watch them stew for a year or so before getting back on their feet.
The x86-64 CPU market has felt stagnant for a while. The real innovation seems to be happening with ARM and mobile. In which Intel is way behind. Might explain some of the news from today.
Brutal, nearly the lowest since 2008. Makes me want to buy in at this point.
Edit: I bought a few shares, so now they’re sure to go bankrupt by tomorrow.
Edit 2: ayyy did I actually catch a falling knife for once? It’s still going up after hours.
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.
Nah a lot of companies dead to economy power obsolete government things (army is part of govt by the way) and they just get special contracts and otherwise just fully die.
And the frank truth is, if things heat up on the Taiwan strait, 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.
For each politician doing something good there’s 10 to undo it. Let’s see.
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.
Haha stupid evil
I’ll use that any time I think about politicians as well. Trademark that fast mate
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.
Don’t worry, tomorrow the market is closed!
I found Jim Cramer.
Good move.
It’s not everyday that I’m thankful that grandma didn’t leave me $700,000 but today is one of those days
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.
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.
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.
IBM went through a huge transformation. More than one probably. Most if not all giant firms have had to reinvent themselves many times over. I remember the pivot from a technology company to services and consulting, which was hugely controversial, as I got to see that relatively up close. I won’t forgive them for giving up thinkpad though.
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. Which means value of money will be halved in 9 years
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.
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.
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.
Are we still talking about Intel, or…?
The funny thing is that there are executives who know what they’re doing, but they may be outvoted by people who failed upward due to connections or a “good background” (ivy league, internship, etc.).
I always thought “what does a brand name education prove?” This isn’t the 1800s. Community college now is almost as good as Harvard was in the 1800s. Back then, just being able to read meant that you were educated.
Also, what does an internship prove? You know how to carry 8 coffees at once? You can wear a cheap suit? No, it’s all cover for connections. If businesses wanted the best people (say the top 10%) you could literally just set up a table outside a subway station and interview random commuters, getting probably 10 good prospects in a day.
Ivy League, internships etc. prove exactly what you are critizising. They prove to have the connections. They prove to be part of the in-group. They prove that you will defend your class interests against the lower classes. And if you are one of the very few people who achieve upwards class mobility, they prove that you will be betraying them.
This is not about running the best company or running the best economy. It is about maintaining class power and privilege.
This is not about running the best company or running the best economy. It is about maintaining class power and privilege.
I understand your point, but neo-marxist perspectives like this fundamentally misunderstand what companies care about (for obvious reasons). No company cares about “class power” or “privilege” because shareholders only care about their own money.
Their “class” is not important when it comes to investing. If they could fire all the nepo babies and use AI instead, they would do it in 1 second.
Their “class” is not important when it comes to investing. If they could fire all the nepo babies and use AI instead, they would do it in 1 second.
Firing the nepo babys remains consistent with being the owning class. And they put the nepo babies so they dont have to put rising middle and lower class people there.
It’s not. Investors literally only care about money.
Rich people don’t have “class consciousness” because they all want to be better and richer than other rich people. That’s what “keeping up with the Joneses” (or Kardashians) is. You don’t want the Joneses to improve, because that hurts you.
It’s a zero-sum game at the top. If your neighbor buys a Mercedes, you need to buy a Maserati. Like I said, neo-marxism fundamentally misunderstands rich people.
Rich people don’t think these things consciously. The wealthy don’t think, “How can I best ensure the worker class remains oppressed?” They simply act selfishly, and their actions together with the actions of other selfish people lead naturally to oppression.
Until they get wealthy enough to buy politicians, at which point it does consciously become “How can I best ensure the worker class remains oppressed?”
I think you misunderstand rich people. Why do you think they make PACs? Why do you think they make Ivy Leagues and send their kids there? Why do you think they keep up all these illusions. Do you think they are too stupid to realize that you can get an equivalent education for a fraction of that money?
That’s communism.
Lot’s of isms
Like stupidism!
I got an AMD 386sx33, dx4-100, Duron 1000, Athlon xp2200, (some Intel here, P4, Atom), then a 5600H now in a mini PC.
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.
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…
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
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.
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.
Stock price is largely about future earnings potential, not current quarter or past results. That’s why a company can have record-breaking earnings, but still eat shit in stock price for a while if it lowers predictions for next quarter.
yet
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.
Oops that’s where we (US government) invested 9 billion under the chips act.
How many layoffs in the US?
wow
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
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!?
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.
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.
And some moron on Wallstreetbets just invested his $700k inheritance in shares yesterday. He’s -200k rn
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.
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.
Food stamps or Ferrari. Sounds like you already have the former
I do not. I could probably qualify though.
Depends of how you look at it, it might be even worse.
At least with casinos you know that mathematically, the more you play the more you lose. With stocks though, you have the hope that you can win it back.
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. Next phase is trying to win it all back
I am so glad I got this lesson before the inheritance, I would 100% do something similar
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.
