Bad day for Intel shares which ended down more than 16%. Of course, volatility is now commonplace among technology stocks, but fortunately it is not every day that we see such a mess.
The situation may seem paradoxical for the semiconductor giant, which on Thursday published financial results that exceeded analysts’ expectations. The forecasts for the current quarter were also intended to be reassuring.
But the information that the financial markets did not like at all is the new postponement of its first processors engraved in 7 nm, which will not see the light of day before 2023 … In the minds of investors, this decision echoed to Apple’s announcement last month about Apple Silicon Macs. At the time, the Intel share price had not flinched, Apple admittedly representing a small part of Intel’s turnover.
But this new delay once again proves Apple right in its strategy. Last month, Handel Jones, semiconductor consultant, estimated at 12 months, or even 18, Intel’s lag behind its competitors in terms of engraving fineness. 18 months is a huge delay in the world of new technologies. And we have the impression that this delay is only increasing, to the point that it could end up being problematic in many areas for Intel. We are far from the simple case of Apple.
It is well known, the misfortune of some making the happiness of others, the AMD share has soared today, taking over 16%!
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