Intel shares suffered their largest decline in over 40 years after the company gave a grim growth forecast and laid out plans to slash 15,000 jobs, signalling that the chipmaker is ill-equipped to compete in the AI era.
The shares fell more than 28 per cent after trading opened in New York on Friday, wiping out about $32 billion in market value. This marks the stock’s biggest intraday drop since since at least 1982.Sales for the current quarter will be $12.5-13.5 billion, the company said on Thursday. Analysts had projected $14.4 billion on average.
Competitors who specialise in AI are winning over some of Intel’s customers. Nvidia now has more than twice its former nemesis’ quarterly sales. Once a struggling rival, AMD is valued more than $100 billion higher by investors and Taiwan Semiconductor Manufacturing Co is widely recognised as having the industry’s best production.
The shares fell more than 28 per cent after trading opened in New York on Friday, wiping out about $32 billion in market value. This marks the stock’s biggest intraday drop since since at least 1982.Sales for the current quarter will be $12.5-13.5 billion, the company said on Thursday. Analysts had projected $14.4 billion on average.
Competitors who specialise in AI are winning over some of Intel’s customers. Nvidia now has more than twice its former nemesis’ quarterly sales. Once a struggling rival, AMD is valued more than $100 billion higher by investors and Taiwan Semiconductor Manufacturing Co is widely recognised as having the industry’s best production.
