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.
Since the 5800X3D It’s been known that AMD delivers similar or better performance than Intel’s top-of-the-line chips with far lower power usage and cheaper prices.
Knowing that why would anyone buy the inferior product?
Because that’s only for certain video games.
Because most people don’t actually know that.
Most people have no idea where their laptops are coming from or what makes them run.
If you pay attention and you know about computers you would have heard something, but I guarantee you the average person has heard almost nothing about Intel’s issues