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.
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.