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.
This will happen to the whole tech industry. Once people realise that Moores law is dead. Intel is just the beginning and „A.I.“ will not safe them.
If you can tell what the person means, there’s no reason to publicly correct their spelling or grammar.
Hard disagree. Common mistakes ruin grammar because other people will adopt these. And when written language becomes ambiguous due to people not using proper grammar, that’s a very important foundation of “words have no meaning” fuzziness employed by populists, and in effect dumbs down people.
If I got a snickers every time I heard moore law is dead I’d be obese.
Any moment now, any moment.
It is dead.
The only reason it seems like it’s not is because AMD server CPUs are just getting physically larger and larger
Check out 3D stacked ram for example. Moores law isn’t about some size measure.
And now I have to eat another snickers…
As every gambler knows: A trend is your friend.
And we live in a casino economy.
The effort required to keep increasing resistors in a chip is just too high at some point. And the power required to run all the chips is becoming unsustainable. Besides that, hardware companies are way over valued if you look at earnings / market cap
Smart people saw this coming.
Sanctions were supposed to stop China’s semiconductor industry. The opposite happened.
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.
Which population is socially oppressed? I understood it as the West’s but I need to confirm who you meant.
Sanctions were never supposed to stop china’s semiconductor industry. They were to stop/slow down China from acquiring chips short term. This is quite a strawman argument.
They didn’t slow China. You are redefining success after the fact, but the Internet remembers.
More specifically, the restrictions aim to cut off China’s access to and ability to make advanced chips under 16nm or 14nm, DRAM memory chips of 18nm or more advanced, and NAND flash memory chips of 128 layers or more. Those technologies are essential to supercomputing and artificial intelligence.
Huawei’s New Mystery 7nm Chip from Chinese Fab Defies US Sanctions
China chipmaker SMIC on track to produce sanctions-busting 5nm processors for Huawei this year: Report
Again, sanctions were on chips and import lithography. They have lots of trouble importing Nvidia chips, or at least more cost. Of course the country where a lot of chips are made will continue making chips. But while Taiwan was putting 3nm chips in phones a year ago, China is producing 5nm headlines, chips on mass scale yet to be seen.
What did people expect, China to go back to the stone age?
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.
Brutal, nearly the lowest since 2008. Makes me want to buy in at this point.
Edit: I bought a few shares, so now they’re sure to go bankrupt by tomorrow.
Edit 2: ayyy did I actually catch a falling knife for once? It’s still going up after hours.
The market does tend to overreact so this is possible a sign to buy low. I can’t be bothered to check the fundamenals but it seems unlikely that amd is a better investment long term. If you are not looking at least 5 years to the future stocks are a bad idea.
AMD is super hot right now. Not in a good way.
I bought AMD at $8/share (and am still holding it), and I’m getting a similar vibe from Intel now…
I bought AMD at $8/share (and am still holding it)
Wow, I’d have dropped that hot potato ages ago.
OTOH: Boeing. Had the 737 Max bug been a one-off incredibly bad fuck up, they would have been a good buy. Then it turned out that that bug was just the first sign of many deep seated issues with their production process. Boeing 100% deserves everything they’re getting. Management skipped right over lawful, chaotic, and neutral evil and went into stupid evil, and decided that sacrificing QC/QA on aerospace equipment would be a great way to get returns for shareholders.
They didn’t skip those steps. The market just ignored the fact that they’ve been stepping through those options for the last 30 years because that’s what the market as a whole has been doing. As cliche and annoying as it sounds, this is exactly what late stage capitalism looks like. Once growth through sales becomes difficult, usually from approaching monopolistic size in a market, they only have two options left. They can either cut corners and headcount to save on operational expenses or they can decrease revenue growth. Considering the fact that the central thesis of our economy is the idea that infinite growth is not only possible but the only valid pursuit of any corporation it’s easy to guess what they’re going to do when faced with declining sales or any other detriment to growth.
Fundamentals: Intel powers the US military industrial complex, they’ll weather this storm.
And the frank truth is, if things heat up on the Taiwan strait, TSMC is toast and Samsung won’t be able to pick up the slack.
These fucking idiots. All they had to do was pretend they gave a fuck about the chip debacle and play everything slowly. They couldn’t even do that. They couldn’t even pretend to give a fuck about anyone. Neither their customers nor their employees.
If they replaced the C-suite with the custodial staff, they would be in a significantly better position than they are now. Executives are always dumb as fuck, with very few exceptions. Pre-requisites for the job: narcisism, sociopathy and idiocy.
If they replaced the C-suite with the custodial staff, they would be in a significantly better position than they are now. Executives are always dumb as fuck, with very few exceptions. Pre-requisites for the job: narcisism, sociopathy and idiocy.
Are we still talking about Intel, or…?
The funny thing is that there are executives who know what they’re doing, but they may be outvoted by people who failed upward due to connections or a “good background” (ivy league, internship, etc.).
I always thought “what does a brand name education prove?” This isn’t the 1800s. Community college now is almost as good as Harvard was in the 1800s. Back then, just being able to read meant that you were educated.
Also, what does an internship prove? You know how to carry 8 coffees at once? You can wear a cheap suit? No, it’s all cover for connections. If businesses wanted the best people (say the top 10%) you could literally just set up a table outside a subway station and interview random commuters, getting probably 10 good prospects in a day.
Ivy League, internships etc. prove exactly what you are critizising. They prove to have the connections. They prove to be part of the in-group. They prove that you will defend your class interests against the lower classes. And if you are one of the very few people who achieve upwards class mobility, they prove that you will be betraying them.
This is not about running the best company or running the best economy. It is about maintaining class power and privilege.
Fuck around and find out
