Intel Shares: August 2 proved to be a Black Friday for Intel, one of the world’s leading chip making companies. The company’s shares plunged by about 28 percent on Friday and it proved to be the biggest fall in the company’s history in 50 years. The company has suffered a loss of about $35 billion in a single day. The company’s stock fell by $7.57 and closed at $21.48. Intel had announced layoffs on Thursday. The company is going to lay off 15 percent of its employees. This decision will affect about 17,500 employees. Intel has suffered huge losses in the manufacturing business.
Shares of many chip manufacturing companies sank
Apart from Intel, the US-listed shares of other chip companies Micron Technology, GlobalFoundries and TSMC fell between 2.8% and 6.7% on Friday. However, for Intel, this year proved to be the biggest decline since 1974. Along with layoffs, the company has also announced suspension of dividend. Currently, Intel seems to be lagging behind in competition with other chip manufacturing companies including Taiwan’s TSMC.
The company has been going down since the launch of the iPhone
Experts have called it an existential crisis for Intel. They say that to continue the fight, Intel will have to survive in some way or the other. Nvidia has also gone down by 2 percent on Wall Street. Santa Clara-based Intel was once the world’s largest chip manufacturer. Its ‘Intel Inside logo’ was a symbol of trust in the era of personal computers. In the year 2000, its market value reached 500 billion dollars. But after the launch of Apple’s iPhone and other mobile devices in the year 2007, it started lagging behind.
Intel’s market value may fall to $90 billion
It is feared that Intel’s market value may go down to around $90 billion. In the era of AI, it is not able to compete with Nvidia. However, Intel has planned to spend $100 billion on manufacturing. The company has assured investors that it is moving on the right path. However, experts say that it may take several years for Intel to implement this plan.
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