this post was submitted on 02 Aug 2024

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Intel's stock drops 30% overnight —company sheds $39 billion in market cap | As of now, Intel's market value is a fraction of Nvidia's worth and less than half of AMD's (www.tomshardware.com)

submitted 3 months ago by ForgottenFlux@lemmy.world to c/technology@lemmy.world

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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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[–] Boozilla@lemmy.world 408 points 3 months ago (2 children)

When I had to flash my BIOS and pray that it didn't brick my PC I cursed them, saying "Fuck Intel, I hope their stock plummets!"

You're welcome everyone.

[–] affiliate@lemmy.world 224 points 3 months ago (3 children)

can you do reddit next please

[–] foofiepie@lemmy.world 101 points 3 months ago (2 children)

Tiktok afterwards please.

[–] Reverendender@sh.itjust.works 87 points 3 months ago (2 children)

Then all oil companies

[–] Damage@feddit.it 53 points 3 months ago (1 children)

Let's do these before everything else

[–] kittenzrulz123@lemmy.blahaj.zone 25 points 3 months ago (1 children)

Then we move on to private equity firms

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[–] BombOmOm@lemmy.world 26 points 3 months ago

Then all oil companies

Survey says, Gazprom! https://lemmy.world/post/18220754

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[–] xantoxis@lemmy.world 23 points 3 months ago (2 children)

Can you tell a guy first, I could have shorted

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[–] BombOmOm@lemmy.world 262 points 3 months ago (1 children)

It certainly doesn't help Intel has been intentionally selling defective product in the 13th and 14th gen lines. People are quite reasonably going to AMD more and more.

[–] jws_shadotak@sh.itjust.works 35 points 3 months ago (18 children)

Does AMD have anything to compete with Intel QSV? I'm looking to upgrade my Plex server and was looking at a newer Intel CPU.

[–] jlh@lemmy.jlh.name 55 points 3 months ago* (last edited 3 months ago) (3 children)

The latest AMD cpus do have transcoding, but Amd transcode isn't very good and isn't very compatible with Linux.

You can pick up an Intel A310 single slot GPU for $100 and it has AV1 encode, which is something that the igpu QSV doesn't have. Works very well in my Epyc motherboard with 76 pcie lanes. I definitely recommend going with an ATX 1st gen Epyc cpu+motherboard if you want something that can do NVMe raid.

[–] sanpo@sopuli.xyz 24 points 3 months ago (5 children)

Amd transcode isn’t very good and isn’t very compatible with Linux

It's compatible just fine. But the quality... well, it's not the worst, but definitely not the best quality.

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[–] Burn_The_Right@lemmy.world 196 points 3 months ago (4 children)

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.

[–] billiam0202@lemmy.world 45 points 3 months ago (1 children)

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...?

[–] KevonLooney@lemm.ee 24 points 3 months ago (6 children)

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.

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[–] cygnus@lemmy.ca 130 points 3 months ago* (last edited 3 months ago) (4 children)

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.

[–] bluGill@kbin.run 43 points 3 months ago (5 children)

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.

[–] conditional_soup@lemm.ee 58 points 3 months ago* (last edited 3 months ago) (2 children)

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.

[–] krashmo@lemmy.world 30 points 3 months ago

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.

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[–] bluemellophone@lemmy.world 35 points 3 months ago (5 children)

Fundamentals: Intel powers the US military industrial complex, they’ll weather this storm.

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[–] cheddar@programming.dev 24 points 3 months ago

Don't worry, tomorrow the market is closed!

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[–] Raiderkev@lemmy.world 116 points 3 months ago (5 children)

And some moron on Wallstreetbets just invested his $700k inheritance in shares yesterday. He's -200k rn

[–] captainlezbian@lemmy.world 80 points 3 months ago (9 children)

The stock market is the least stupid way to be addicted to gambling but it’s still one of the dumber addictions to develop.

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[–] Melvin_Ferd@lemmy.world 83 points 3 months ago

It's not everyday that I'm thankful that grandma didn't leave me $700,000 but today is one of those days

[–] Bbmin7b5@lemm.ee 73 points 3 months ago (8 children)

And people will continue to buy the 14900k and have the shocked pikachu face.

[–] Badeendje@lemmy.world 50 points 3 months ago

Well a lot of products have these things in them and a lot of people have no clue they are getting sold a defective product. This is all on intel, do not blame the customer because the big corporation is selling defective goods.

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[–] darki@lemmy.world 72 points 3 months ago

More than that, for years their CPUs have been eating more and more watts and the electricity prices went up... Just keep them on par with AMD CPUs... But still , most default to Intel...

[–] gcheliotis@lemmy.world 61 points 3 months ago (8 children)

And to think I grew up at a time when Intel reigned supreme. My my.

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[–] Clbull@lemmy.world 61 points 3 months ago (1 children)

After how horribly they handled the whole hardware defect scandal with their 13th and 14th gen i Series processors, this is 100% deserved.

Intel is a cautionary tale of what happens when you allow bean counters who care more about EBITDA than their customers and staff to run the show.

[–] Got_Bent@lemmy.world 26 points 3 months ago (1 children)

This sounds like a modern day version of the Schlitz mistake back in the seventies where they cut the quality so much, so fast, that the formerly largest brewery in America became a worthless brand that nobody trusted.

The b-school lesson from this was to drop the quality of your product more slowly so people wouldn't notice.

I figured no big company would ever suffer consequences from shitty product ever again because they'd figured out the drip instead of the open floodgates.

I hope more companies get to enjoy this fate, especially food producers.

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[–] KyuubiNoKitsune@lemmy.blahaj.zone 59 points 3 months ago (1 children)

Fucking good! I know it's not the primary reason, but it's by high time that people see laying off 15k people as a bad thing and the company suffering for it.

[–] Blackmist@feddit.uk 30 points 3 months ago (10 children)

I fear it's wishful thinking that the layoffs are what made the stock tank. It's certainly never hurt anyone else...

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[–] Toes@ani.social 58 points 3 months ago (3 children)

I never imagined a world where Intel was the little fish. Wild

[–] SloganLessons@lemmy.world 29 points 3 months ago

Complacency does that to you

Nokia knows

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[–] SplashJackson@lemmy.ca 55 points 3 months ago

Maybe they shouldn't have fucked over all of their own people.

Fuck em

[–] uberdroog@lemmy.world 55 points 3 months ago

glad I just went with AMD. Dodged a bullet.
Man that 11 billion they just got from us, so hot.

[–] sp3tr4l@lemmy.zip 46 points 3 months ago (21 children)

They also announced they are going to stop paying stock dividends starting Q4.

https://www.marketwatch.com/story/intel-to-suspend-dividend-cut-15-of-staff-upon-big-earnings-miss-d811a220

Back in ye olden days, you used to buy a stock largely due to its ability to regularly pay you back a dividend, as a more conventional kind of investment, before the more modern idea of 'buy low sell high' became the most prevalent investment strategy / market dynamic.

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[–] sunzu@kbin.run 43 points 3 months ago

But think about all those stock buy backs.

Didnt they spend 40 billion last ten years?

How much is federal government giving them?

Asking for a friend.

Disgusting welfare queens

Edit: Intel to Get $23 Billion in Government Grants & Loans Plus $25 Billion Investment Tax Credits, to Invest $100 Billion in the US, after Wasting $94 Billion on Share Buybacks in 15 Years

https://wolfstreet.com/2024/03/20/intel-to-get-23-billion-in-government-grants-loans-plus-25-billion-investment-tax-credits-to-invest-100-billion-in-the-us-after-wasting-94-billion-on-share-buybacks-in-15-years/

[–] forgotmylastusername@lemmy.ml 38 points 3 months ago* (last edited 3 months ago) (1 children)

It took long enough for the market to wake up to it. They dragged their ass for what like 10 years without much real innovation. And everyone knew it the whole time. Then Apple ditched them. That alone should have been a huge sign. Apple does not fuck around. They definitely knew Intel had been rotting from the inside out.

[–] mrmanager 26 points 3 months ago (2 children)

Apple likes to control the entire ecosystem, and wanted to make their own processors to make them more efficient and produce less heat. They succeeded too, the M2 and M3 chips are incredible.

So I think they would have ditched anyone, but Intel probably also made it easier by being so bad. :)

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[–] specialseaweed@sh.itjust.works 36 points 3 months ago (1 children)

I shorted them hard once. They stayed solvent longer than I could.

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[–] MeekerThanBeaker@lemmy.world 29 points 3 months ago (5 children)

I bought an Intel last time because I got AMD the time before that and they had issues that I can't recall right now. Security or they had to slow it down?

Luckily, I'm still on a 11th Gen. I guess I'm going back to AMD when I decide to upgrade again.

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[–] TheFrirish@jlai.lu 28 points 3 months ago (5 children)

shoutout to the guy on wall street bets dunking 700k before it tanked to 30%

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[–] cheese_greater@lemmy.world 26 points 3 months ago* (last edited 3 months ago) (3 children)

I wonder if that guy who bet his inheritance from WallStreetBets is ok...

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[–] PanArab@lemm.ee 26 points 3 months ago (16 children)

Smart people saw this coming.

Sanctions were supposed to stop China's semiconductor industry. The opposite happened.

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[–] helpImTrappedOnline@lemmy.world 24 points 3 months ago (7 children)

So, I should invest now for cheap and when they inevitably bounce back, sell?

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