Intel posted its Q2 2024 earnings report and within hours, saw its stock price absolutely TANK by over 30% and wiping away tens of billions of dollars in market cap in a near-instant.
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The news comes on the announcement of Intel set to lay off over 15% of its global workforce, which will result in 17,500 people losing their jobs before the year is out. Q3 2024 forecast revenues were below market expectations, bleeding CPU market share to AMD all over the place (Ryzen for consumers, Threadripper for workstation users and content creators, and EPYC for servers and data centers).
Intel stock has dropped over 31% in the last couple of days, from $31 to $21 which wiped away over $30 billion in market cap, with large-scale lay offs to now occur.
Intel CEO Pat Gelsinger said: “I need less people at headquarters, more people in the field, supporting customers. Our objective is to… pay a competitive dividend over time, but right now, focusing on the balance sheet, deleveraging“.
Here’s the skinny on Intel’s troubles of late:
- Not only that, but Arc has failed to make a splash.
- AMD has been killing Intel on efficiency/price for years now.
- Intel has nothing on AI right now, Gaudi is nothing compared to NVIDIA or AMD.
- Intel node leadership in the future, is thanks to ASML and US government funding.
- Firing 17,500+ people after a disastrous Q2 2024 report doesn’t look good AT ALL.
- Bleeding out massive server CPU market share to AMD EPYC
- Bleeding out massive consumer CPU market share to AMD Ryzen
- 13th Gen and 14th Gen Core CPUs failing all over the place
- Stock is down 30%+ in the last 48 hours