Intel’s stock dropped around 30% overnight, shaving some $39 billion from the company’s market capitalization since rumors of a pending layoff first emerged. The devastating results come after the chip giant reported a loss for the second quarter, complained about yield issues with the Meteor Lake CPU, provided a modest business outlook for the next few quarters, and announced plans to lay off 15,000 people worldwide.

When the NYSE closed on July 31, Intel’s market capitalization was $130.86 billion. Then, a report about Intel’s massive layoffs was published, and the company’s market capitalization dropped sharply to $123.96 billion on August 1. Following Intel’s financial report yesterday, the company’s capitalization dropped to $91.86 billion. Essentially, Intel has lost half of its capitalization since January. As of now, Intel’s market value is a fraction of Nvidia’s worth and less than half of AMD’s.

As Intel’s actions look rather desperate, analysts believe that Intel’s challenges are existential. “Intel’s issues are now approaching the existential,” Stacy Rasgon, an analyst with Bernstein, told Reuters.

    • Billiam
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      458 months ago

      If they replaced the C-suite with the custodial staff, they would be in a significantly better position than they are now. Executives are always dumb as fuck, with very few exceptions. Pre-requisites for the job: narcisism, sociopathy and idiocy.

      Are we still talking about Intel, or…?

      • @KevonLooney@lemm.ee
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        248 months ago

        The funny thing is that there are executives who know what they’re doing, but they may be outvoted by people who failed upward due to connections or a “good background” (ivy league, internship, etc.).

        I always thought “what does a brand name education prove?” This isn’t the 1800s. Community college now is almost as good as Harvard was in the 1800s. Back then, just being able to read meant that you were educated.

        Also, what does an internship prove? You know how to carry 8 coffees at once? You can wear a cheap suit? No, it’s all cover for connections. If businesses wanted the best people (say the top 10%) you could literally just set up a table outside a subway station and interview random commuters, getting probably 10 good prospects in a day.

        • @Tryptaminev@lemm.ee
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          188 months ago

          Ivy League, internships etc. prove exactly what you are critizising. They prove to have the connections. They prove to be part of the in-group. They prove that you will defend your class interests against the lower classes. And if you are one of the very few people who achieve upwards class mobility, they prove that you will be betraying them.

          This is not about running the best company or running the best economy. It is about maintaining class power and privilege.

          • @KevonLooney@lemm.ee
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            38 months ago

            This is not about running the best company or running the best economy. It is about maintaining class power and privilege.

            I understand your point, but neo-marxist perspectives like this fundamentally misunderstand what companies care about (for obvious reasons). No company cares about “class power” or “privilege” because shareholders only care about their own money.

            Their “class” is not important when it comes to investing. If they could fire all the nepo babies and use AI instead, they would do it in 1 second.

            • @Tryptaminev@lemm.ee
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              58 months ago

              Their “class” is not important when it comes to investing. If they could fire all the nepo babies and use AI instead, they would do it in 1 second.

              Firing the nepo babys remains consistent with being the owning class. And they put the nepo babies so they dont have to put rising middle and lower class people there.

              • @KevonLooney@lemm.ee
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                08 months ago

                It’s not. Investors literally only care about money.

                Rich people don’t have “class consciousness” because they all want to be better and richer than other rich people. That’s what “keeping up with the Joneses” (or Kardashians) is. You don’t want the Joneses to improve, because that hurts you.

                It’s a zero-sum game at the top. If your neighbor buys a Mercedes, you need to buy a Maserati. Like I said, neo-marxism fundamentally misunderstands rich people.

                • @Tryptaminev@lemm.ee
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                  78 months ago

                  I think you misunderstand rich people. Why do you think they make PACs? Why do you think they make Ivy Leagues and send their kids there? Why do you think they keep up all these illusions. Do you think they are too stupid to realize that you can get an equivalent education for a fraction of that money?

  • Boozilla
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    4088 months ago

    When I had to flash my BIOS and pray that it didn’t brick my PC I cursed them, saying “Fuck Intel, I hope their stock plummets!”

    You’re welcome everyone.

  • @cygnus@lemmy.ca
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    8 months ago

    Brutal, nearly the lowest since 2008. Makes me want to buy in at this point.

    Edit: I bought a few shares, so now they’re sure to go bankrupt by tomorrow.

    Edit 2: ayyy did I actually catch a falling knife for once? It’s still going up after hours.

    • bluGill
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      438 months ago

      The market does tend to overreact so this is possible a sign to buy low. I can’t be bothered to check the fundamenals but it seems unlikely that amd is a better investment long term. If you are not looking at least 5 years to the future stocks are a bad idea.

      • @conditional_soup@lemm.ee
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        8 months ago

        OTOH: Boeing. Had the 737 Max bug been a one-off incredibly bad fuck up, they would have been a good buy. Then it turned out that that bug was just the first sign of many deep seated issues with their production process. Boeing 100% deserves everything they’re getting. Management skipped right over lawful, chaotic, and neutral evil and went into stupid evil, and decided that sacrificing QC/QA on aerospace equipment would be a great way to get returns for shareholders.

        • @krashmo@lemmy.world
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          308 months ago

          They didn’t skip those steps. The market just ignored the fact that they’ve been stepping through those options for the last 30 years because that’s what the market as a whole has been doing. As cliche and annoying as it sounds, this is exactly what late stage capitalism looks like. Once growth through sales becomes difficult, usually from approaching monopolistic size in a market, they only have two options left. They can either cut corners and headcount to save on operational expenses or they can decrease revenue growth. Considering the fact that the central thesis of our economy is the idea that infinite growth is not only possible but the only valid pursuit of any corporation it’s easy to guess what they’re going to do when faced with declining sales or any other detriment to growth.

        • @trolololol@lemmy.world
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          18 months ago

          Nah a lot of companies dead to economy power obsolete government things (army is part of govt by the way) and they just get special contracts and otherwise just fully die.

        • ✺roguetrick✺
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          8 months ago

          And the frank truth is, if things heat up on the Taiwan strait, TSMC is toast and Samsung won’t be able to pick up the slack.

          • @trolololol@lemmy.world
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            78 months ago

            It’s going to take 3d chess from China to put their hands in TSMC without US bringing in “democracy”. That factory is more strategic than oil.

            • ✺roguetrick✺
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              28 months ago

              It ain’t worth a nuclear war. Why do you think the feds are so focused on domestic manufacturing? The Arizona TSMC factory is just shipping workers from Taiwan it’s so dependent. I’d hate to see what the actual supply chain looks like.

      • @brucethemoose@lemmy.world
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        8 months ago

        AMD is super hot right now. Not in a good way.

        I bought AMD at $8/share (and am still holding it), and I’m getting a similar vibe from Intel now…

        • @cygnus@lemmy.ca
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          88 months ago

          I bought AMD at $8/share (and am still holding it)

          Wow, I’d have dropped that hot potato ages ago.

          • @brucethemoose@lemmy.world
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            108 months ago

            I am glad I didn’t lol. Still not, the datacenter GPUs are something else, and so is their multi-chip design prowess.

  • BombOmOm
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    2628 months ago

    It certainly doesn’t help Intel has been intentionally selling defective product in the 13th and 14th gen lines. People are quite reasonably going to AMD more and more.

    • @jws_shadotak@sh.itjust.works
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      358 months ago

      Does AMD have anything to compete with Intel QSV? I’m looking to upgrade my Plex server and was looking at a newer Intel CPU.

      • BombOmOm
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        AMD have anything to compete with Intel QSV

        I believe AMD VCN does the same thing. Though I haven’t looked into it. AMD chips also have pretty decent onboard video cores, so you might be able to do hardware accelerated encoding that way too.

        was looking at a newer Intel CPU

        Just stay away from Intel 13th and 14th gen chips. They have oxidation issues from the factory and are also over-volting themselves. The former is unfixable and the latter causes unfixable damage.

      • Justin
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        8 months ago

        The latest AMD cpus do have transcoding, but Amd transcode isn’t very good and isn’t very compatible with Linux.

        You can pick up an Intel A310 single slot GPU for $100 and it has AV1 encode, which is something that the igpu QSV doesn’t have. Works very well in my Epyc motherboard with 76 pcie lanes. I definitely recommend going with an ATX 1st gen Epyc cpu+motherboard if you want something that can do NVMe raid.

        • @sanpo@sopuli.xyz
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          248 months ago

          Amd transcode isn’t very good and isn’t very compatible with Linux

          It’s compatible just fine. But the quality… well, it’s not the worst, but definitely not the best quality.

          • @schizo@forum.uncomfortable.business
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            98 months ago

            Politely, not the worst compared to what, exactly?

            It’s way worse than qsv, nvenc, x264 or x265 which are basically the only hardware or cpu options you’re likely to run into doing plex transcoding.

            • Justin
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              18 months ago

              I think AMF is still faster/better quality than CPU transcoding, depending on the preset.

            • @sanpo@sopuli.xyz
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              48 months ago

              I don’t have QSV or NVENC hardware to compare, but AMD is perfectly fine in most cases.
              I mostly noticed quality drop with very busy scenes and some scene transitions.
              Outside of those the quality was acceptable.

              I’d say on my setup it’s comparable to software encoding with x264 veryfast preset.

              And my GPU is 5 years old now, so I’m sure newer cards have improved.

              • @schizo@forum.uncomfortable.business
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                48 months ago

                Lower quality at any given bitrate was my experience too. For local stuff it didn’t really matter: if I could do 3x the bitrate to get the same quality, then meh, who cares.

                If you’re streaming/doing shit over the internet/encoding for something like Youtube, though, it’s uh, not a good tradeoff because you can’t necessarily even make that tradeoff.

        • @JuvenoiaAgent@lemmy.ca
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          27 months ago

          You can pick up an Intel A310 single slot GPU for $100 and it has AV1 encode, which is something that the igpu QSV doesn’t have.

          That’s still an Intel product though…

          • Justin
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            7 months ago

            It’s the best option on the market right now and the most compatible one. The drivers are owned by the Linux Foundation, and there are no known hardware bugs with Intel GPUs, unlike with Intel CPUs. You have so much flexibility; Buying an Intel GPU doesn’t prevent you from using another CPU, even GPU-less AMD Epyc CPUs that have the cheapest PCIe/$. All you need is a PCIe slot and you get all the benefits of Intel with none of the drawbacks.

            I’m a bit of an AMD fanboy sometimes and I own AMD stock, but the A310 can’t be beat for Jellyfin transcoding. If you really hate Intel, keep in mind that Intel probably loses money on every GPU they sell 😉

      • @solrize@lemmy.world
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        18 months ago

        I hardly ever transcode at home. I mostly use ffmpeg on a crappy old i5 server that I use for other beataround stuff too. I tend to do that in batch mode and it’s fast enough for my purposes. That’s an approach to consider. Or you could spin up Intel VM’s as needed on Hetzner unless you’re doing a totally ridiculous amount of transcoding.

        • @jws_shadotak@sh.itjust.works
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          48 months ago

          I need on-location transcoding because my internet is garbage (~50 mbps). Sometimes my users need to transcode the show if the bit rate of the file is too high for my internet to keep up.

          • @solrize@lemmy.world
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            38 months ago

            Wait you’re literally serving other users from a home internet? Oh man, get a VM or some colo space or something. Or faster internet. Your internet is much faster than mine and one reason I transcode remotely is to drop the bit rate enough that I can download the transcoded version without waiting all day.

            • @jws_shadotak@sh.itjust.works
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              28 months ago

              I mean, I can stream 4K HDR if the player supports the video format, but clients don’t always jive well with whatever Radarr decided. I know I can fine tune it but everything works well enough right now and I don’t have time to change it.

              I move around too much to do colocation. A VPS/VM isn’t worth the cost to me. My server is all old parts and I don’t pay for power usage.

      • @CCMan1701A@startrek.website
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        18 months ago

        I find software reencoding/remux instead of doing it on the fly is easier for my brain to manage over alignment of the hardware stars.

  • @Raiderkev@lemmy.world
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    1168 months ago

    And some moron on Wallstreetbets just invested his $700k inheritance in shares yesterday. He’s -200k rn

    • 𝓔𝓶𝓶𝓲𝓮
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      8 months ago

      Wow I am glad I only lost 10k and called it expensive stock market crash course. Apparently minute trading is not that easy

      And that person is waiting for recovery, classic move. Next phase is trying to win it all back

      I am so glad I got this lesson before the inheritance, I would 100% do something similar

        • 𝓔𝓶𝓶𝓲𝓮
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          8 months ago

          I am not exactly super good with money to be honest, recently I bought like full set of apple pro devices and now I am thinking how to get liquidity for UV skincare and clothes, I desperately need clothes, and body laser and several plastic surgeries and… yeah.
          But I learned something from all these sprees I hope. It’s that I am not rich and shouldn’t behave like I am. I may be slightly stupid tho, in an adhd way.

    • @captainlezbian@lemmy.world
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      808 months ago

      The stock market is the least stupid way to be addicted to gambling but it’s still one of the dumber addictions to develop.

        • shastaxc
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          48 months ago

          Except unlike casinos, there are breakers in place to prevent crazy jackpot earnings. Don’t expect to 10x your money in a day… Or month.

          • @Tryptaminev@lemm.ee
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            8 months ago

            Expect? No.

            Possible? With trading in puts and calls options definitely.

            Still stupidly risky gambling where you loose most of the time? Absolutely

      • @calcopiritus@lemmy.world
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        18 months ago

        Depends of how you look at it, it might be even worse.

        At least with casinos you know that mathematically, the more you play the more you lose. With stocks though, you have the hope that you can win it back.

      • @theangryseal@lemmy.world
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        -98 months ago

        When you ain’t got nothing, you got nothing to lose bud. That’s where I’m at in this moment. If I lose every penny I have I’m still poor. If I don’t, maybe I can get a start on a damn house or something.

    • @stembolts@programming.dev
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      58 months ago

      As long as the jackass doesn’t sell, they’re solid.

      I had a roommate who invested, when his stuff went down more than 5% he’d sell it, “Don’t wanna be too risky,” he’d say, unaware that he was breaking the cardinal rule of investing…

      Then, “Omg it’s up again, I better buy high before it goes higher!” then repeat pattern A again.

      Moral of the story, if you actually believe in a stock, unrealized losses are not something to react to. Or do, and become a warning tale told to others, ha. Them -5% hits add up QUICK.

  • @Melvin_Ferd@lemmy.world
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    838 months ago

    It’s not everyday that I’m thankful that grandma didn’t leave me $700,000 but today is one of those days

  • Toes♀
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    588 months ago

    I never imagined a world where Intel was the little fish. Wild

      • @KevonLooney@lemm.ee
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        18 months ago

        Yes, it was. Tech led the downturn yesterday, but Nasdaq was only down like 2%. The “world” stocks (ex-US) are more volatile than the US. In my opinion (and Warren Buffett’s), they are not worth investing in as ETFs. Only particular companies. The markets are genuinely worse than in the US.

        • @Knock_Knock_Lemmy_In@lemmy.world
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          18 months ago

          Warren Buffett invests in particular companies because he can own enough to have influence.

          Us mortals should look for broad trackers with low fees.

      • fatalicus
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        97 months ago

        Just a regular stock buy, so up. Lost around 200k so far.

        But he did say he was going to sit on the stocks for some years, so might get some back.

          • @Squizzy@lemmy.world
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            37 months ago

            If you bought the day before an earnings report with the premise being a long term hold, as the company stock was dropping, you would wait and buy after.

  • @Lets_Eat_Grandma@lemm.ee
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    8 months ago

    There is absolutely no way intel is going under any time soon. They may drop more but it’s almost certain that they will recover.

    I don’t understand a valuation that puts them under AMD given how poor amd’s market share is in the gpu market (which intel is now a new valid competitor in for the budget space) alongside the fact that intel’s cpu market share is higher than AMD by a large margin.

    I’m saying all this as a huge AMD fan. I have a 5800x3d and a 6800xt. I made our work standard laptop be amd based as I set the standards for my organization in my work role. I know my choice is the minority choice. Even in datacenter intel has an overwhelming lead.

    • @Buddahriffic@lemmy.world
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      217 months ago

      It’s because the stock market is closer to a casino than a place where fair valuations of businesses are made.

      Also, market cap is just the latest trade price times the total number of shares. It doesn’t mean that anyone is willing to buy or sell the entire business for that amount, just that some shares were traded at a price that extrapolates to that.

      It’s kinda like getting an A on your first assignment in grade 1 and assuming that means you’re a straight A student and will maintain that until you finish your doctorate. Or getting an F and assuming you might as well just drop out.

      The closest thing to reality market cap really says is that investors who are making current trades believe that AMD will surpass Intel at some point. Or that they aren’t comparing either company directly to the other and just go by feeling plus the price history. “I feel more confident in AMD today, therefore the price should be higher than it was yesterday. I feel less confident in Intel today, therefore the price should be lower than it was yesterday.” It doesn’t even really matter if yesterday’s price was accurate, it’s all just relative to itself and fed by fear and greed.

      • @Lets_Eat_Grandma@lemm.ee
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        Preach. I’m just worried for when nvidia pops. The grumblings about the machine learning fad are starting to happen but that’s a company that is incredibly likely to lose 80% of revenue in 5 years once businesses see how the huge investments flop.

        There’s some strange belief that chat bots being semi-coherent is going to turn into true AI and take over all the white collar jobs. The more popular chatbots become the poorer the data quality will be. It’s inevitable that all the bots posting on all the social media sites will poison the datasets especially as more and more turn to chatbots to generate content.

        Peoples imaginations are running wild. I think if 2% of the use cases pan out it will be a wild success but ML is not new and entire divisions have been scrapped for failing to turn a profit (looking at Alexa, for sure.) When the pop happens the drop will be so significant the ripples may cause a recession all by itself.

    • ඞmir
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      18 months ago

      How is Intel’s GPU marketshare any better… Last I heard they were selling their chips at a loss

      • @Lets_Eat_Grandma@lemm.ee
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        They are not doing better in the gpu marketshare. They are a new challenger in that space and are no where near getting the lead. The point I was making is that they are just getting into that space, and if they are successful at chipping away at nvidia’s giant high margin market share they can very possibly make a ton of money in that space.

        Their GPUs however are fairly good price/performance for consumers, meaning they are building market share in that space. Like any business starting out at something they are losing money to gain market share. That’s how capitalism works today. You lose money to gain popularity until you get so much market share you can turn screws to make significant profits.

        Intel’s bread and butter is CPUs. They are the majority market share in the highly lucrative desktop cpu, mobile laptop cpu and datacenter cpu space.

        edit: clarification, mobile I mean laptop. I don’t think intel is in the cellular phone space?

  • Granbo's Holy Hotrod
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    558 months ago
    1. glad I just went with AMD. Dodged a bullet.
    2. Man that 11 billion they just got from us, so hot.
  • @brucethemoose@lemmy.world
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    168 months ago

    Time to buy?

    I’m pretty sure the US gov views them as too big to fail. Surely they can’t mess up Xe, Falcon Shores, and the foundry business, right?

    RIGHT!?

    • @catloaf@lemm.ee
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      128 months ago

      They could, but the US government has a strong interest in keeping them around. Not only do they do a huge amount of development, and not just on CPUs, but they also have the largest share of government purchasing by far.

      • @trolololol@lemmy.world
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        Yep maybe but I think the difference of IT and banks is that if your research and innovation department get defunded you are basically selling the same shit year over year but competitors are not.

    • @brucethemoose@lemmy.world
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      8 months ago

      I bought AMD at $8 a share (and still hold it, and Xilinx that got folded into it), and I am buying some Intel soon.

      The price is right.

      I may be an idiot, but I was right once.

  • sunzu
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    But think about all those stock buy backs.

    Didnt they spend 40 billion last ten years?

    How much is federal government giving them?

    Asking for a friend.

    Disgusting welfare queens

    Edit: Intel to Get $23 Billion in Government Grants & Loans Plus $25 Billion Investment Tax Credits, to Invest $100 Billion in the US, after Wasting $94 Billion on Share Buybacks in 15 Years

    https://wolfstreet.com/2024/03/20/intel-to-get-23-billion-in-government-grants-loans-plus-25-billion-investment-tax-credits-to-invest-100-billion-in-the-us-after-wasting-94-billion-on-share-buybacks-in-15-years/

    • @ByteOnBikes@slrpnk.net
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      168 months ago

      I grew up in an era where IBM reign supreme.

      A decade ago, it dipped to 1990s level but now it’s pretty up there in value again.

      I don’t understand tech company stocks at all.

        • 𝓔𝓶𝓶𝓲𝓮
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          8 months ago

          Yes, it seems like people always forget about inflation. Okay yes your one milion will be two millions in 14 years at 5% yearly but it will be worth only 1.25 million corrected for inflation so you just made 25% over 14 years. And that’s for just 3% year to year inflation.

          So companies must at least grow by inflation rate to stay afloat.

          Inflation is a word that haunts me to be honest. It is 8% here right now. Which means value of money will be halved in 9 years

      • @gcheliotis@lemmy.world
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        17 months ago

        IBM went through a huge transformation. More than one probably. Most if not all giant firms have had to reinvent themselves many times over. I remember the pivot from a technology company to services and consulting, which was hugely controversial, as I got to see that relatively up close. I won’t forgive them for giving up thinkpad though.