- cross-posted to:
- pracownicze@szmer.info
- ekg@szmer.info
- cross-posted to:
- pracownicze@szmer.info
- ekg@szmer.info
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.
Smart people saw this coming.
Sanctions were supposed to stop China’s semiconductor industry. The opposite happened.
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
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.
October 2022
September 2023
February 2024
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?
Intel doesn’t even make 5nm chips. SMIC is making 5nm chips less than 2 years after the sanctions that were meant to stop it at 14nm.
You can spin this all you want.
Intel? The company that’s been failing for 5 years and lost 30% of it value in one day? That Intel?
Ni hao, comrade.
The one that absconded with taxpayers’ money, yes.
That’s a great reference for Chinese manufacturers then.
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.
They have an existential population problem, chips won’t really fix that. Their tech prowess might delay the inevitable, but they need to start cranking out some babies or they’re on the fast track to stagnation
Which population is socially oppressed? I understood it as the West’s but I need to confirm who you meant.
Both fo sho
Surprisingly good video, though the channel in general is a bit propagandistic.