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.

  • Pilferjinx@lemmy.world
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    4 months ago

    China is definitely going to replace the US as the next empire if they play their cards right. It just sucks that the population is so socially oppressed to the point it may break them if they encounter an adverse phenomenon they can’t adapt to.

    • VantaBrandon@lemmy.world
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      4 months ago

      They have an existential population problem, chips won’t really fix that. Their tech prowess might delay the inevitable, but they need to start cranking out some babies or they’re on the fast track to stagnation