Intel's stock drops 30% overnight —company sheds $39 billion in market cap
www.tomshardware.com
Tough times ahead.

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.

          • TheGrandNagus@lemmy.worldEnglish
            25·
            3 months ago

            There’s a whole world outside of the US, you know.

            E: the nationalists didn’t like that lol

            • Crashumbc@lemmy.worldEnglish
              102·
              3 months ago

              Huh? We’re discussing the merging of two US companies. So I’m not sure what you’re going on about. Unless you honestly think the EU (the only ones that could even try) would try to over rule the US about two of its own companies. ROFL

              • TheGrandNagus@lemmy.worldEnglish
                31·
                3 months ago

                Yes? Like they regularly do?

                The US, EU, and UK all took issue with Nvidia trying to buy ARM.

                The UK and EU had to approve Microsoft buying Activision.

                The US is not the only country in the world.

              • captainlezbian@lemmy.worldEnglish
                31·
                3 months ago

                Yeah it’s not like Australia can stop them, only force the sale of their Austrian branches. And while that may affect neighboring countries like Croatia and Antarctica it won’t stop the fact that the majority of the company is in one of the Unions of States of America

        • TheGrandNagus@lemmy.worldEnglish
          31·
          3 months ago

          I am sure about that.

          Pretty much everyone was against them buying ARM. Imagine if they bought Intel.

          • crusa187@lemmy.mlEnglish
            2·
            3 months ago

            First of all, I just want to acknowledge how humorous the point you’re making is given your name, Zek.

            Second, I hear you. What I’m saying is that in the states we have seen a disturbing lack of interest in trust busting over the past 20-30 years, and it’s led to some ridiculous monopolization in some markets. Tech is definitely one area that suffers from this. You’re right that EU regulators could push back on this if they wanted to, but think about what that might mean if nvidia/intel decided to play hardball. We are presently in a golden age of AI where nvidia’s products are basically the mainstay of the entire market…it could really set the EU back competitively if they chose to refuse those products at this particular juncture. I think they would face enormous pressure to simply accept the deal, in this hypothetical.

    • ✺roguetrick✺@lemmy.worldEnglish
      5·
      3 months ago

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