Intel get 11 Billion Dollars of stock value wiped out

[ItsMitch]

UPDATE:

Intel has reportedly lost 11 billion dollars worth of stock market value wiped out in the past 3 days from the fiasco with the CPU flaw.

 

Quote

Investors are piling into AMD shares and selling Intel stock after major chip security vulnerabilities were revealed earlier this week, and it totally makes sense.

Enterprises will likely diversify their chip security architecture risk for mission-critical applications by buying more AMD server chips. The company's "architecture differences" have proven immune to the more problematic one of the two disclosed vulnerabilities.

British tech website The Register reported Tuesday that some Intel processors have a "fundamental design flaw" and security issue, which spurred the company to confirm the problem later in the day.

AMD shares are up 10.4 percent in the two days through Thursday following the report, while Intel's stock declined 5.2 percent in the period, wiping out $11.3 billion of shareholder value.

One of the two vulnerabilities, called Meltdown, affects Intel processors. The other, named Spectre, could affect chips from Intel, AMD and Arm.

 

https://www.cnbc.com/2018/01/05/amd-is-big-winner-from-chip-flaw-fiasco.html

 

 

 

 

 

 

Intel Corporation's stocks have been on the low as of a recent security vulnerability which has been revealed by The Register, It showed off multiple ways that the CPU could have been exploited due to its Kernel Memory Leak, HOWEVER, AMD and ARM processors was affected but NOT AS BAD AS INTEL, MAKING THAT VERY CLEAR.

Story is coming in from a few sources but the information is primarily from NASDAQ & CNBC

 

 

Quote

 

A report alleging Intel chips have a security flaw is moving semiconductor stocks.
The British tech website Register reported Tuesday that some Intel processors have a "fundamental design flaw" that will spur a significant security update of Linux and Microsoft Windows operating systems to work around it.

Shares of AMD were up 5.2 percent Wednesday, while Intel's stock declined 3.4 percent.

"Programmers are scrambling to overhaul the open-source Linux kernel's virtual memory system," the report said. "Crucially, these updates to both Linux and Windows will incur a performance hit on Intel products."

 

 

 

It also came out that the Intel CEO had sold his stocks 2 months after Intel was informed of the problem, but Intel argues it was already planned. The sale stock netted him a worth of 24 Million USD which is really strange and seems off in my opinion. 

 

Quote

 

Intel says the sale was preplanned — but that plan was put in place months after it learned of the chip vulnerability

In the statement, the Intel representative said Krzanich's sale had nothing to do with the newly disclosed chip vulnerability and was done as part of a standard stock-sale plan.

"Brian's sale is unrelated," the representative said in the statement, adding that Krzanich "continues to hold shares in line with corporate guidelines."

 

 

 

 

NASDAQ stocks for this month alone are the following (Red line is where the Intel CPU problem was reported): 

Spoiler

 

 

Sources: http://uk.businessinsider.com/intel-ceo-krzanich-sold-shares-after-company-was-informed-of-chip-flaw-2018-1 | https://www.cnbc.com/2018/01/03/amd-shares-surge-on-report-of-an-intel-chip-security-flaw.html

 

 

[dizmo]

It's funny, but if you look back over the last few months, Intel stock is actually doing extremely well.

 

[Archiemage]

Preplanned my ass.  He sold all but the bare minimum of 240k shares that are required by his contract.  Once they were warned about the flaw, Krzanich should have known that dumping this much would give the perception of insider trading.  The SEC should be all over this in the coming weeks.

 

What worse is that Google told them about this months ago and they made the decision not to do anything about it until it became public knowledge.

[Matu20]

Who knew that bad news made the stocks fall.

[mr moose]

They are still higher today than they where upon public announcement.  Also they have a long way to go down before they are outside of the normal trading averages. 

[Linus_torvalds]

2 minutes ago, mr moose said:

They are still higher today than they where upon public announcement.  Also they have a long way to go down before they are outside of the normal trading averages. 

The higher you are the more painful is fall.

 

Glad to here bad things about intel. They were robbing us for years!

[mr moose]

3 minutes ago, mate_mate91 said:

The higher you are the more painful is fall.

 

Glad to here bad things about intel. They were robbing us for years!

Unless you are a stock trader/liquidator.  In some cases watching the fall is gold in the bank.

[mynameisjuan]

6 minutes ago, mate_mate91 said:

Glad to here bad things about intel. They were robbing us for years!

So robbing is now equal to lack of competition? Also gad to hear bad things about intel? Do you even read the post on this forum?

[Tom Cat]

2 hours ago, mynameisjuan said:

So robbing is now equal to lack of competition? Also gad to hear bad things about intel? Do you even read the post on this forum?

Things are not that bad. I still hold money in Intel. 

[thorhammerz]

A 4-5% drop is a hardly "dive" ($46.65 -> $44.43).

[suits]

Time to buy some intel stock if it actually “dives”.

[ItsMitch]

Well, Intel just got 11 billion of stock value wiped the literal fuck out.

Quote

 

Enterprises will likely diversify their chip security architecture risk for mission-critical applications by buying more AMD server chips. The company's "architecture differences" have proven immune to the more problematic one of the two disclosed vulnerabilities.

British tech website The Register reported Tuesday that some Intel processors have a "fundamental design flaw" and security issue, which spurred the company to confirm the problem later in the day.

AMD shares are up 10.4 percent in the two days through Thursday following the report, while Intel's stock declined 5.2 percent in the period, wiping out $11.3 billion of shareholder value.

 

https://www.cnbc.com/2018/01/05/amd-is-big-winner-from-chip-flaw-fiasco.html

[The Benjamins]

5 minutes ago, SC2Mitch said:

Well, Intel just got 11 billion of stock value wiped the literal fuck out.

https://www.cnbc.com/2018/01/05/amd-is-big-winner-from-chip-flaw-fiasco.html

its only 5% that's not that much

[ItsMitch]

Just now, The Benjamins said:

its only 5% that's not that much

I don't think any company wants to lose 11 billion of stock value, let's be real. 

[Silentprototipe]

[The Benjamins]

3 minutes ago, SC2Mitch said:

I don't think any company wants to lose 11 billion of stock value, let's be real. 

well its stupid to look at stock by value and not %, most companies see a 1% with in a few days based on Googles market cap that is 0.76 Billion. Today google is up 1.2% so basically got 1 Billion today.

 

a 5% stock change sucks but its not even close to being a issue, that can be made up in a month easily.

 

Intel's stock isn't even low then what it was mid Dec.

[cj09beira]

18 hours ago, mynameisjuan said:

So robbing is now equal to lack of competition? Also gad to hear bad things about intel? Do you even read the post on this forum?

you do know that the lack of competition is thanks to intel's braking international law many many times, with anything from million dollar bribes to break of contract, to the point where amd was forced to sign a contract where they cant sue intel anymore (in exchange for much needed cash)

[thorhammerz]

1 hour ago, SC2Mitch said:

I don't think any company wants to lose 11 billion of stock value, let's be real. 

It's 11 billion of theoretical value -  this drop in stock price is not coming out of their bottom line, and will rebound in a few weeks  (if not in a few days).

 

A 5% drop in value is not even approaching correction territory: a large portion of the tech/semi-conductor industry fell 10-20% back in early December... and look where they're back at now . AMD itself goes through this 10-15% price swing every couple of months (it's great for swing trading, and shorting).

 

The stock price dropping is the least of Intel's worries (hello lawsuits + Epyc).

[ApolloFury]

It's rising up again because Intel just now said they have "fixed" the Spectre flaw. Again these people don't know how technology works.

[thorhammerz]

18 minutes ago, ApolloFury said:

It's rising up again because Intel just now said they have "fixed" the Spectre flaw. Again these people don't know how technology works.

Investors (generally) don't, but they also generally don't really need to either.

 

They just need to understand how people and capital tend to behave when confronted with general trends (e.g. "RAM prices will continue to stay high into 2018 before tapering off"), financial reports, and "news" to generate capital gains; that's all they're there for (to make money).

[Mira Yurizaki]

Correct me if I'm wrong, but stock value is nothing more than the public's perception of how well the company is doing. It's not an indication of how well they're actually doing.

 

EDIT: An example off the top of my mind is Amazon. Amazon between the mid to late 2000s was barely keeping afloat, but their stock prices kept rising.

[Walkin]

3 hours ago, M.Yurizaki said:

Correct me if I'm wrong, but stock value is nothing more than the public's perception of how well the company is doing. It's not an indication of how well they're actually doing.

 

EDIT: An example off the top of my mind is Amazon. Amazon between the mid to late 2000s was barely keeping afloat, but their stock prices kept rising.

Kinda but in this case that perception affects the real value of your company, if that value collapses, in most of the cases your company collapses and it's now open for any one to take over if they want or just go down. Of course this is an extreme case but it has happened.

[Trik'Stari]

God I wish I had bought AMD stock last year.

[abazigal]

18 hours ago, Walkin said:

Kinda but in this case that perception affects the real value of your company, if that value collapses, in most of the cases your company collapses and it's now open for any one to take over if they want or just go down. Of course this is an extreme case but it has happened.

It could well just be a kneejerk reaction to the news, and investors will start flocking back to Intel once the ramifications become clear. I wouldn't read too much into short-term fluctuations such as this. 

[Sauron]

23 hours ago, The Benjamins said:

its only 5% that's not that much

Losing 5% in a matter of hours is a pretty massive hit relatively speaking and it's likely to drop further. I doubt it's going to result in a crippling dive but it's still significant. If their next cpu line doesn't have this issue fixed they could lose even more.

21 hours ago, M.Yurizaki said:

Correct me if I'm wrong, but stock value is nothing more than the public's perception of how well the company is doing. It's not an indication of how well they're actually doing.

 

EDIT: An example off the top of my mind is Amazon. Amazon between the mid to late 2000s was barely keeping afloat, but their stock prices kept rising.

It's unrelated to how much money they're making, yes. However it means stockholders and investors think they'll be making more money from other stocks, namely AMD's. The drop itself is not the problem, the problem is that they foresee a drop in sales.