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Intel's stock drops 30% overnight —company sheds $39 billion in market cap | As of now, Intel's market value is a fraction of Nvidia's worth and less than half of AMD's (www.tomshardware.com)

submitted 4 months ago by ForgottenFlux to c/technology

273 comments fedilink hide all child comments

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] 8 points 4 months ago (2 children)

My MSCI World ETF shares lost about 4% in a day. yesterday. Does this have anything to do with this shitshow?

[–] SkunkWorkz 7 points 4 months ago (2 children)

Wasn’t the market down overall yesterday.

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[–] Knock_Knock_Lemmy_In 6 points 4 months ago

Doubt it. The ETF holds 1500 large and mid-cap companies across 23 developed countries. It doesn't hold enough Intel shares.

[–] profdc9 8 points 4 months ago

My guess is Intel's management is full of inflexible dead weight that doesn't want to adapt to the new reality that PCs are only going to become less and less relevant as a computing model. Like other companies that had established cash-cow businesses like Sears with its mail-order catalog, Kodak with film, Motorola with analog mobile phones, etc., current management doesn't want to jeopardize their positions by allowing a new business to dominate, and so the company is doomed to a slow death.

[–] prettydarknwild 7 points 4 months ago

rust giveth, and rust taketh away

[–] VantaBrandon 7 points 4 months ago (1 children)

But surely the desktop PC market is going to bounce back soon

Any day now

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[–] [email protected] 6 points 4 months ago (10 children)

Will nvidia buy Intel, like AMD bought ATI?

[–] roguetrick 5 points 4 months ago* (last edited 4 months ago)

Nvidia doesn't want to be in the foundry business. They actually like having to make other foundries compete for their business.

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[–] [email protected] 6 points 4 months ago

Fuck around and find out

[–] Aetherion 6 points 4 months ago (18 children)

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.