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.
The moment Arm decided it should follow the Huawei ban, China started to invest in their own silicon at a staggering rate. After all, Apple already proved you can start a CPU design from scratch and be fine while Risc-V already offered a royalty free architecture to base their work off.
I know GamersNexus has also covered Chinese CPUs based on x86. I forget the details, maybe AMD let them license their IP?
if your internationally sanctioned IP suddenly means a lot less, what is the US going to do? sanction them?
Well, the purpose of this project is independence from US silicon and Arm. The purpose isn’t for international export.
that’s the point, there is nothing the US can do