After just enough issues to see stock prices tumbling to the ground, Intel is now slammed with a lawsuit as investors claim the company hid a lot of its problems. Team Blue just can’t catch a break lately.
First, the brand gets extremely bad press after its slow and, frankly, poor response to its CPU stability issues. This was followed by very bad financial results. The icing on the cake comes courtesy of its investors, who plan to sue the company for recent losses. This is not the only legal action shadowing the brand, as a law firm is investigating the potential of a class action lawsuit over 13th and 14th Gen CPU instabilities.
The investors claim that Intel concealed issues that led to bad quarterly results. These results, in turn, caused the suspension of its dividend program and 15,000 redundancies, accounting for 15% of its workforce. These losses are estimated to have reached $32 billion. Intel is currently the worst-performing stock in the S&P 500, with a -62% YTD (Year to Date) return.
Intel is currently valued at $84 billion after dropping by $32 billion in one day. This is less than half of AMD’s $217 billion, not even mentioning Nvidia which plays in a whole other league with $2.54 trillion. To get an idea of how Intel has fallen, OpenAI was valued at $80 billion following its latest funding round. I wonder if the story would have been different had Intel decided to come clean regarding its processors’ issues. I bet yes, but we will never know.
Intel stock is slowly recovering from its massive fall, but there is a long way ahead to reach the $30+ share price prior to these issues. We hope this wake-up call doesn’t go unnoticed so the brand gets back on its feet and into making good chips. As much as we like joking about hot-running Core CPUs, we don’t want AMD to become the only player on the market. Just remember when Intel was the big boy on the block, we had little to no generational improvement. Luckily Intel is a large and important corporation, thus lawsuit or not, it should survive this.