Intel stock news
On Friday, July 24, 2020 shares of Intel Corporation (INTC) closed more than 16% lower at 50.59-9.81 (-16.24%). Intel stock had a weekly performance of -15.68% for the week ending on July 24, 2020, and is down -15.47% on a year-to-date basis.
Why Intel stock fell 16%
“An old saying in the semiconductor industry, attributed to Advanced Micro Devices Inc. co-founder Jerry Sanders, was “real men have fabs.”
That saying — along with its dated, sexist phrasing — is now officially no longer true, as semiconductor giant Intel Corp. INTC, -16.24% admitted Thursday that it could actually partner with another semiconductor foundry to help with its next-generation manufacturing technology, as it announced a delay in its next process technology for future chips.
That was a huge admission of defeat for one of Silicon Valley’s most iconic companies. Intel is one of the last remaining semiconductor companies that still uses its own fabrication plants (also called fabs) to manufacture most of its chips. These plants now cost many billions of dollars as they develop increasingly microscopic transistors aimed at increasing computer processing speeds. Intel currently farms out a small percentage, around 20%, of chips or chipsets to other contractors, but manufactures the bulk of its processors in its own factories around the world.
On Thursday, Intel’s huge earnings beat was overshadowed by the news of a delay in its next-generation manufacturing process that would move the chip maker to a 7-nanometer process. The news was an echo of many delays and problems with moving to the 10-nanometer process a couple of years ago, now finally in use for the company’s chips for PCs and servers.”
Stock market source: https://www.marketwatch.com/story/intel-admits-another-defeat-with-unprecedented-manufacturing-issues-2020-07-23?mod=mw_quote_news
Intel stock chart