this post was submitted on 02 Aug 2024
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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.

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[–] Aetherion@lemmy.world 6 points 3 months ago (5 children)

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.

[–] boonhet@lemm.ee 38 points 3 months ago

Intel also released two generations of CPUs that just die under heavy loads.

[–] Zetta@mander.xyz 24 points 3 months ago

Seems pretty alive to me.

[–] Valmond@lemmy.world 22 points 3 months ago (2 children)

If I got a snickers every time I heard moore law is dead I'd be obese.

Any moment now, any moment.

[–] tempest@lemmy.ca 1 points 3 months ago (1 children)

It is dead.

The only reason it seems like it's not is because AMD server CPUs are just getting physically larger and larger

[–] Valmond@lemmy.world 20 points 3 months ago* (last edited 3 months ago) (1 children)

Check out 3D stacked ram for example. Moores law isn't about some size measure.

And now I have to eat another snickers...

[–] tempest@lemmy.ca 6 points 3 months ago (1 children)

It's literally defined as the number of transistors doubling in a chip. It doesn't at all mention the size or density.

https://en.m.wikipedia.org/wiki/Moore%27s_law

[–] Valmond@lemmy.world 6 points 3 months ago* (last edited 3 months ago) (1 children)

Well yes exactly.

Edit: you just showed the law is still alive and kicking:

It is dead.

The only reason it seems like it's not is because AMD server CPUs are just getting physically larger and larger

[–] tempest@lemmy.ca 5 points 3 months ago (1 children)

Fair enough.

Though if density is irrelevant then the entire thing is meaningless.

Should instead be talking about how large of a silicon wafer can be produced.

[–] Valmond@lemmy.world 1 points 3 months ago

Or something like CPU power per dollar, but that's just me.

[–] technocrit@lemmy.dbzer0.com 0 points 3 months ago (1 children)

As every gambler knows: A trend is your friend.

And we live in a casino economy.

[–] Valmond@lemmy.world 1 points 3 months ago

Sure it'll stop one day but that day is not today.

[–] Nomecks@lemmy.ca 12 points 3 months ago (1 children)

You seriously think we're going to slow down on infrastructure?

[–] raspberriesareyummy@lemmy.world 6 points 3 months ago (1 children)