CPU/GPU manufacturer Intel has lost nearly 30% of its share price in the last month. The tech giant, for nearly a decade now, has had to adjust to the push and pull competition it shares with AMD and, more recently in the GPU sector, NVIDIA.
This current loss in investor confidence likely has more to do with Intel’s long-term strategy of becoming a CPU manufacturer that produces its own chips instead of handing that process out to third parties, much like how AMD uses TSMC for the sake of its chip fabrication.
This plan also includes the vision of Intel becoming a hub for other chip manufacturers to outsource their business. Whether to not that facet of the business becomes possible (and profitable) remains to be seen. But as it stands, the investments Intel has made in their in-house fabrication processes have cost them heavily, even with the Biden administration’s agreement for up to 8.5 billion dollar public investment.
Intel has stated publicly that they do not expect these fabrication locations to break even until around 2030, making the company, theoretically, and in a perfect universe, a long-term buy.
TLDR; Intel has lost nearly 30% of its share price in the last month. The investor woes stem from losses in profit on multiple fronts and a waning public confidence in the company’s ability to build a competitive, profitable in-house fabrication process to rival TSMC, which currently takes the majority share of third-party fabrication business.
