The decline never ends for Intel. After recording the biggest quarterly loss in its history, the American giant lost its place in the prestigious Dow Jones stock index. For the benefit of NVIDIA…
Historical losses
Intel is going through a period of unprecedented turbulence for many months. Having accumulated a significant delay in the artificial intelligence sector, the company is also suffering from the drop in demand in its preferred sector, the PC. Especially since it is also losing market share in this sector, while its historic rival, AMD, is gaining momentum.
Over the period from July to September, Intel recorded a loss of $16.6 billionthe most important in its history. A colossal sum partly attributed to the costs of the restructuring implemented by the company. In addition to laying off thousands of people, it also decided to shut down several of its projects.
Downgrading on the Stock Exchange
Following the publication of Intel's quarterly results, the company was replaced by NVIDIA in the Dow Jones Industrial Average, the oldest and widely followed stock index in the world. Used as a barometer to assess the general health of the American economy, it tracks the performance of 30 large publicly traded companies in the country.
Decision Reflects Major Shift in Semiconductor Industry, Officially Downgrades Intelwhich nevertheless dominated the industry for many years. NVIDIA is now the undisputed leader in artificial intelligence (AI) chips, demand for which continues to explode to meet the rise of generative AI.
Although Intel has embarked on the development of AI accelerators, the gap with its competitors now seems difficult to close. The contrast is striking: while NVIDIA's market capitalization has been soaring spectacularly for months, Intel's has fallen 50% since the start of the year. And the bad news could still pile up for the manufacturer, because Jensen Huang's firm is now coveting the PC chip market…
Subsidies that are slow to come
A reason for hope for Intel, the American Chips Act is also slow to get underway. Aiming to increase local production of semiconductors, this law will grant significant public subsidies to manufacturers.
Intel is the biggest beneficiary, with the US Commerce Department having promised aid of $8.5 billion and $11 billion. Problem, in addition to significant delays in the payment of this amount, the outcome of the presidential election risks redistributing the cards, although the text was voted on in a bipartisan manner.
« We are disappointed by the length and slowness of the distribution of funds, which has lasted for more than two years. I have invested 30 billion in capital and we have not received any subsidies yet. We therefore think that it has been too slow and we are somewhat frustrated by it “, explained Pat Gelsinger, CEO of Intel, in an interview with Bloomberg.
Despite everything, he remains confident of receiving the cash due, regardless of which candidate is elected president.
- Intel recorded the worst quarterly loss in its history.
- At the same time, the company was replaced by NVIDIA in the prestigious Dow Jones stock index.
- Intel is counting on public subsidies to move forward, but these are slow to arrive.
???? To not miss any news from Presse-citron, follow us on Google News and WhatsApp.
