this post was submitted on 02 Aug 2024
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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.

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[–] [email protected] 43 points 3 months ago (3 children)

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.

[–] [email protected] 58 points 3 months ago* (last edited 3 months ago) (2 children)

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.

[–] krashmo 30 points 3 months ago

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.

[–] trolololol 3 points 3 months ago

Haha stupid evil

I'll use that any time I think about politicians as well. Trademark that fast mate

[–] bluemellophone 35 points 3 months ago (2 children)

Fundamentals: Intel powers the US military industrial complex, they’ll weather this storm.

[–] roguetrick 5 points 3 months ago* (last edited 3 months ago) (1 children)

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.

[–] trolololol 7 points 3 months ago (1 children)

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.

[–] roguetrick 2 points 3 months ago (1 children)

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.

[–] trolololol 1 points 3 months ago

For each politician doing something good there's 10 to undo it. Let's see.

[–] trolololol 1 points 3 months ago

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.

[–] brucethemoose 12 points 3 months ago* (last edited 3 months ago) (1 children)

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...

[–] [email protected] 8 points 3 months ago (1 children)

I bought AMD at $8/share (and am still holding it)

Wow, I'd have dropped that hot potato ages ago.

[–] brucethemoose 10 points 3 months ago

I am glad I didn't lol. Still not, the datacenter GPUs are something else, and so is their multi-chip design prowess.