Intel is clearly in poor health, after stories about the instability of its CPUs, which are ruining the company’s life, and the redundancy plan, it is now time to take a look at the stock market. The company lost nearly 30% following the official announcement of this redundancy plan and its financial results!
Intel redundancies: the stock market is not taking it well !
As we told you here, the company wants to shed a significant proportion of its payroll. The aim is to make savings, ostensibly to the tune of $10 billion, by cutting the workforce by 15%, this would entail 18,000 jobs will be axed.
Add to this the announcement of the company’s financial results, which are not good. The blues achieved sales of $12.8 billion, less than expected and down YoY compared to 2023, whereas AMD has been making progress. Worse still, the company is losing money: $1.6 billion compared with a profit of $1.5 billion for the same period last year. What’s more, no dividend will be paid this year.
In short, all this has clearly not pleased the stock market, where the company’s market capitalisation has literally collapsed. At the time of writing, the share price is $20.88, a fall of 28.04%! In terms of valuation, the company has seen its value fall by a total of $30 billion!
Fun fact: AMD’s market capitalisation is currently much higher than that of its rival! Intel currently has a market capitalisation of $94.60 billion, while AMD is worth $235.52 billion. If you’d told us that a few years ago, we wouldn’t have believed you. Of course, these two companies are a long way from NVIDIA, which is currently worth $2.720 billion. Yes, the price has gone down.
