Intel's stock drops 30% overnight —company sheds $39 billion in market cap
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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
    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.