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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 3 months ago by ForgottenFlux@lemmy.world to c/technology@lemmy.world

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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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[–] forgotmylastusername@lemmy.ml 38 points 3 months ago* (last edited 3 months ago) (3 children)

It took long enough for the market to wake up to it. They dragged their ass for what like 10 years without much real innovation. And everyone knew it the whole time. Then Apple ditched them. That alone should have been a huge sign. Apple does not fuck around. They definitely knew Intel had been rotting from the inside out.

[–] mrmanager@lemmy.today 26 points 3 months ago (2 children)

Apple likes to control the entire ecosystem, and wanted to make their own processors to make them more efficient and produce less heat. They succeeded too, the M2 and M3 chips are incredible.

So I think they would have ditched anyone, but Intel probably also made it easier by being so bad. :)

[–] Zetta@mander.xyz 20 points 3 months ago

You are 200% correct, apple didn't ditch Intel because Intel, apple did it because apple.

[–] forgotmylastusername@lemmy.ml 9 points 3 months ago

more efficient and produce less heat

Which was impossible to do with x86 space heater. Maybe if Intel hadn't sat idle and actually produced more efficient design. We could be reading about Apples own spin of x86 instead of ARM.