Intel loses $8 billion of its market value after a historic collapse

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Going from a respected, leading corporation to the riskiest, struggling firm overnight does not happen every day, but this is exactly what happened to the US chipmaker, Intel Corp, this week. The company saw an $8 billion loss in its market value this Friday after it revealed its earnings projections, shocking Wall Street along the way, and fanning fears in the personal computer market.

Intel’s announcement shock the business world

According to Intel’s earnings projection for Q1 2023, the company expects to see revenue that is $3 billion under what was estimated. The surprise loss was not the only negative development, as the firm also revealed struggles when it comes to slowing growth in the data center business.

The very same day has seen Intel’s shares close about 6.4% lower than the day before. Meanwhile, the company’s biggest rivals saw an increase of their own shares. Micro Devices saw an 0.3% growth, while Nvidia’s shares went up by 2.8%. Intel’s forecast affected not only Intel itself, but also its main supplier, KLA Corp, which also settled 6.9% lower by the end of the day.

Hans Mosesmann of Rosenblatt Securities said that there are no words that can portray or explain such a historic collapse. He was among the 21 analysts who cut their price targets on the stock following Intel’s announcement.

Intel lost its dominance overnight, and the poor outlook only contributes to the challenges its CEO, Pat Gelsing, has to face as he struggles to bring the company back from the brink. So far, he has attempted to maintain the firm’s status and position by expanding contract manufacturing and building new factories in Europe and the US.

However, while this drop brought a lot of negative attention to Intel, the fact is that the firm has been losing market share to its rivals for quite a while now. AMD, for example, has been outsourcing chip production by contracting other chipmakers, such as Taiwan’s TSMC, in order to take over the market and push Intel out of the way.

Intel’s reasons for having to cut cost remain unknown

With everything that has been going on, Intel will be at a serious disadvantage, even when the market finally finds the bottom, which is not expected before the second half of the year. The company will be in an even more difficult position by that time, as it will lose even more share over time.

So far, many have stated that the reason behind Intel’s need to cut so much cost is still unknown. The firm has created plans for the year, including predictions and forecasts, but all of that is now as far from being actually possible as it can get. Meanwhile, on all sides, there are comments and critiques of the magnitude of deterioration, all of which is bringing concern to the firm’s cash position over time.

Intel stated that it has to cut $3 billion in costs in 2023, and generate $7.7 billion in cash during the fourth quarter. On top of that, the company also has to pay $1.5 billion in dividends.



Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including, CryptoSlate,,, Business2Community, BeinCrypto, and more.