Aug 2 (Reuters) - Intel (INTC.O) , opens new tab was set to erase nearly $25 billion in stock market value on Friday in potentially its worst selloff since 2000 after it suspended dividend and slashed workforce to fund a costly turnaround for its chip-making business.
The company’s stock fell nearly 21% in premarket trading after Intel late on Thursday forecast quarterly revenue below estimates and announced 15% job cuts, raising worries about its ability to catch up with Taiwan’s TSMC (2330.TW), and other chipmakers. “Intel’s issues are now approaching the existential in our view,” Bernstein analyst Stacy Rasgon said.
Yeah, I think long game Intel isn’t going anywhere. AMD lived in second place for years until they cracked it with ryzen. Things will shift back around at some point.
AMD was borderline approaching bankruptcy with Bulldozer until the semi-custom contracts for Xbox and Playstation saved them.
Intel is nowhere near AMD’s bottom, they still have an excellent position in laptops and data centre and they are well positioned to come back strong.
They did get complacent in the 2010s; no question about that.
Didn’t they gut their R&D departments? How do you come back strong with no research?