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.
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.
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 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.
wow
So, I should invest now for cheap and when they inevitably bounce back, sell?
Don’t try to catch a falling knife
But Ive had success in the past, just look at these cool scars as proof :)
I bought some more; stupid me thought it would keep going up (up 15%), then it bombed.
Yeah, go for it 😎
I think you’re pretty much guaranteed a return if you buy on Monday or Tuesday. It’s literally free money.
Nothing ever goes wrong taking “free money” advice
I make sure to take all my financial advice from strangers on the Internet. Nothing could be safer.
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
They definitely deserve this. Still, I hope their fab business works out because we need another high end fab (especially a US based one). It’s exorbitantly expensive, too much for anyone but an established player to enter the market.
I got an AMD 386sx33, dx4-100, Duron 1000, Athlon xp2200, (some Intel here, P4, Atom), then a 5600H now in a mini PC.
rust giveth, and rust taketh away
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
Then all oil companies
Survey says, Gazprom! https://lemmy.world/post/18220754
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.
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.
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.
Seems pretty alive to me.
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.
Sure it’ll stop one day but that day is not today.
*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?
Intel also released two generations of CPUs that just die under heavy loads.
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
Moore’s Law is about transistors, not resistors. Tell me you know nothing about hardware without saying you know nothing about hardware.
Don’t worry, companies found a way to get around Moore’s law: Buy more systems and build more datacenters.
source: made it up
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.
Oops that’s where we (US government) invested 9 billion under the chips act.
How many layoffs in the US?
Nice to just imagine that this was backlash to the inhumanity of the constant layoffs. It’s not, but would be nice.
Nope. It’s the bad financial results, news of defective CPUs, and most crucially, Intel announcing they’re going to stop paying out dividends that have done this.
If anything, investors seem to love mass layoffs, unfortunately.
Burst layoffs to polish up earnings reports are “fine” (in terms of stocks), but hemorrhaging workers when your company is already in hot water for product quality complaints smells of “We’re really desperate to make our reports not look devastating”. From a stupid monkey brain point of view, it sounds like they’re throwing sailors overboard to avoid sinking and I wouldn’t want to be a passenger and risk being next, so I’d try to sell what shares I have before they’re worthless.
I don’t know what heuristics professional traders go with, but I imagine they would follow a more complex and nuanced logic along those same lines. Either way, if enough people do that, it compounds.
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.
I bought an Intel last time because I got AMD the time before that and they had issues that I can’t recall right now. Security or they had to slow it down?
Luckily, I’m still on a 11th Gen. I guess I’m going back to AMD when I decide to upgrade again.
Skylake myself, after a FX 9590 as a last ditch effort.
I’ll never get a P/E core CPU. Windows 11 fucked with virtualization and now the scheduler somehow breaks VMWare, all because my Desktop CPU somehow needs to be as power efficient as a laptop CPU when idle cores already hardly consume power. And spoiler: Otherwise I want to use the power I bought.
New build will be AMD, and only when the old one starts breaking. Now that I think about it, I should research if I can move BitLocker drives to a new system.
You can move the drives. Just have your recovery key/password in hand. No problem.
Or disable bitlocker on the old system and reenable on the new
Intel has had more security stuff that slowed it down than amd.
Amd had some usb dropout issues but otherwise has been pretty solid for Ryzen.
Yeah, my PC still have the occasional USB issues, and if you go with laptop AMD chips now, you’d have to also deal with Mediatek wifi cards since AMD has an exclusivity deal with them.
