Downtrend
Over the weekend, after Intel announced plans to cut about 15,000 jobs to cut its budget due to difficult business operations, the company's stock fell about 26% from $29.05 to $21.48 per share. This was the second largest one-day drop in the company's stock, behind only the shocking 31% drop that occurred in 1974.
Intel is cutting costs amid a major restructuring.
Intel CEO Pat Gelsinger said the company is undergoing its most significant restructuring since its chip transition four decades ago. In recent times, Intel has focused on developing AI-enabled chips after being behind some competitors such as AMD and NVIDIA. However, the development of new AI chips still needs more time to complete. In addition, Intel has also expanded its foundry business to produce chips for partners. The expansion of the foundry business has led to increased investments in factory construction, causing business results to decline. Perhaps, Intel needs a significant amount of time, combined with cost reduction, to achieve its future goals.
Meanwhile, although not falling as "shockingly" as Intel, AMD and Qualcomm stocks are also showing negative signs.
On March 7, AMD’s stock hit a record high in the company’s history, reaching $211 per share. However, AMD’s stock price after the last session of last week was only $132.5, a decrease of nearly 40%. In the second quarter, AMD announced new lines of AI-enabled chips that were highly appreciated. Amid these developments, although the stock price increased at times, it still tended to decrease.
As for Qualcomm, on June 18, many computer manufacturers simultaneously sold Copilot+ laptops with strong AI support running on Qualcomm's Snapdragon X Plus and X Elite platforms. The two chip lines mentioned above are expected to open a new era for laptops. Qualcomm's stock price on June 18 was at around $230/share. But then Qualcomm's stock price gradually decreased and the price at the end of last week was around $159/share, down about 30% from the record high on June 18. Despite many advantages, laptops integrated with Snapdragon X Plus or X Elite running on ARM structure have quite high prices compared to laptops integrated with traditional chips based on X86 structure.
NVIDIA "bubble" warning
In such a context, the recent "tech saint" on the US stock market, NVIDIA, is still at a high level. In mid-June 2024, NVIDIA shares reached a record of about $140, up about 325% compared to $43 a year earlier. However, compared to the record, the closing price of USD shares last week decreased about 24%, to $107.2/share.
Not only that, the Financial Times on August 2 quoted an assessment from Elliott Management, a fund management company, warning investors that NVIDIA's stock price is in a "bubble" state. Accordingly, although the AI boom has boosted NVIDIA's value because this is a corporation with many advantages in AI chips, the increase in the corporation's stock price is "overblown".
Recently, many large technology corporations such as Microsoft, Meta (owner of Facebook) and Amazon have spent tens of billions of dollars to build AI infrastructure in recent months. Most of this money has gone to NVIDIA. However, many of NVIDIA's major customers, typically Microsoft, are promoting plans to develop their own AI chips. Elliott Management is "skeptical" that Big Tech ( the world's leading technology corporations) will continue to buy large quantities of NVIDIA graphics processing chips to develop AI. At the same time, the effectiveness of AI investments shows signs of being "over-hyped" when in reality many applications are not ready to launch. Many AI development projects have not yet shown positive signs in terms of commercial exploitation.
Billionaire Warren Buffett "dumps" Apple stocks
CNN on August 3 cited the financial report of Berkshire Hathaway (USA), controlled by billionaire Warren Buffett, saying that in the second quarter, the group reduced its ownership of Apple shares from 790 million to 400 million shares, equivalent to a value of about 84 billion USD. From the fourth quarter of 2023, Berkshire Hathaway began selling 10 million Apple shares, equivalent to about 1% of the number of shares it holds, and this ratio increased to 13% in the first quarter of 2024.
Source: https://thanhnien.vn/co-phieu-gioi-san-xuat-chip-my-trong-con-bi-cuc-185240804222613863.htm
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