QCI #102 - Intel's Sudden Share Price Drop

Let's Talk Economics!

Part I of II Part Series

This past week, Intel had its worst trading day on Wall Street in the last fifty years. The company reported a big miss on earnings for Q2 2024 and said it would lay off more than 15% of its employees. The stock plummeted 26% in a single day and is trading at its lowest since 2013. Other chipmakers, such as TSMC and Samsung, dropped by ~4%.

Intel's worst trading day was July 1974, when the stock experienced a 31% drop in a single day.

CEO Pat Gelsinger said, "We have laid out an audacious journey of rebuilding this company, and we're going to get that done." The CEO also stated that a decision to more rapidly produce Core Ultra PC chips that can handle artificial intelligence workloads contributed to the loss; the approach was due to Intel falling behind its competitors in the AI race.

Some might see this as an opportunity to own the stock at a discount as the company is investing in its future.

Link to Part II: https://www.quantcompass.io/qci-103-intels-classic-price-rebound/

Let's take a look at Intel's share price since it initially went public below:


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