I was living under a rock around September 2024. Not unfamiliar with AI, decided to ask Gemini what it felt about the drop in stock price.
Gemini's response
Based on the information available, Intel Corp.'s stock price decline around September 2024, and the continuing trend into 2025, can be attributed to a confluence of factors:
Increased Competition:
- Intel faces fierce competition from Advanced Micro Devices (AMD) in the CPU market. -- https://www.investopedia.com/insights/why-amd-intels-only-competitor-intc-amd/#:~:text=Since%20then%2C%20they%20have%20been,processors%20to%20run%20the%20world's
- NVIDIA's dominance in AI GPUs poses a significant challenge to Intel's AI accelerator efforts. -- https://www.marketsandmarkets.com/blog/SE/nvidia-dominance-in-the-ai-chip-market
- TSMC's superior fabrication technology puts pressure on Intel's foundry aspirations. -- https://thecuberesearch.com/247-special-breaking-analysis-the-root-cause-of-intels-troubles-a-critical-analysis/
Manufacturing Challenges:
- Intel's foundry division has reported substantial losses, raising concerns about its ability to compete with TSMC. -- https://www.techzine.eu/news/privacy-compliance/129370/intel-wins-shareholder-lawsuit-over-foundry-losses-and-32-billion-stock-price-fall/
- Doubts surround the readiness of Intel's advanced process nodes, such as the 18A process. -- https://www.electropages.com/blog/2024/09/intels-18a-under-fire-struggling-yields-skepticism-and-race-against-tsmc
Market Shifts:
- The broader industry's transition towards GPUs in the generative AI era has impacted Intel's traditional CPU-centric business.
Leadership Uncertainty: -The departure of the former CEO, and the following period of interim co-CEO's has caused investor unease. -- https://www.intc.com/news-events/press-releases/detail/1731/introducing-intels-next-ceo
General Market Pressures:
- Broader tech sector slumps also contribute to the decline, though intel's specific problems amplify the effect.
In essence, Intel is grappling with competitive pressures, manufacturing hurdles, and evolving market dynamics, all of which have negatively impacted investor confidence and driven the stock price down. -- https://palmettograin.com/news/story/31530298/intel-s-new-ceo-wants-to-save-its-failing-ai-chip-business-is-it-time-to-double-down-on-intc-stock