After a week of ongoing bad news for the chip manufacturer that cumulated with layoffs and potential lawsuits, Intel’s Stock has tumbled. To say that Intel has had a rough time recently would be a major understatement. Reports of instability issues with its 13th and 14th Gen Core processors continue to appear online and while it has offered to extend the for those processors for another two years, it could be too little too late. Intel’s stock has tumbled, per reports from Friday, by 26%, the lowest drop in 50 years, and now at the lowest price since 2013.
- Per CNBC: “Intel shares had their biggest drop since 1974 on Friday after the chipmaker reported a big miss on earnings in the June quarter and said it would lay off more than 15% of its employees.”
- Per USA Today: “The company lost more than $30 billion in market value after it gave a disappointing forecast and said it would cut 15% of its workforce, deepening worries about its ability to catch up with Taiwan’s TSMC and other chipmakers.”
- Per VOX: “It’s the largest drop for the company in half a century; at Friday’s closing bell, shares were trading at $21.48 — a price not seen since 2013.”
Not the only one but a list of woes cannot be ignored
Intel was not the only tech giant to have its shares drop in price as rival NVIDIA saw its stock prices drop by 3.6% (pre-market), a number that could increase following news of the DOJ opening an antitrust investigation regarding allegations of market abuse with its AI offerings. The stock market, in general, had a rough day yesterday but Intel has a list of woes that cannot be ignored and undoubtedly has added to its historic fall in an industry it has dominated for decades.
- Reports of instability issues for its 13th and 14th Gen Core processors leading to permanent damage from oxidation (13th Gen) and voltage settings (both) have been gathering for nearly two years now
- An announcement that it would not recall the aforementioned processors. While Intel is working with customers to place damaged processors, and announced a microcode is forthcoming to prevent damage from ever happening, some are wondering why a recall to fix unpatched chips isn’t happening and is instead pushing partners and future customers to deal with them. Once damaged these processors cannot be repaired by the patch.
- Class Action Lawsuits. A law firm is now asking for information from owners of the above processors which could mean a class action lawsuit is in the works given the growing frustrations of said owners.
- Significant layoffs. Announcing a 15% layoff, following a similar move from a year ago making 25,000 jobs cut since 2023, has investors worried about the future of the company.