Intel actions reach the lowest levels of the last 16 years

Last Tuesday, Intel’s shares closed at $ 18.13, a drop of 7.36%, and the market value fell to US $ 79.06 billion. The numbers have represented the lowest value of the company since July 2009, reflecting the drastic drop in the demand for CPUs and products of the company.

The state -of -the -art industry was significantly impacted by import tariffs introduced by President Trump’s administration. Therefore, Intel suffered a historic drop in market value and stocks, reaching the lowest level in 16 years.

The low is part of a wider movement, With companies such as AMD (-6.5%), Qorvo (-9.9%) and Micron (-4.1%) also facing historic casualties. Apple, Arm, Nvidia, Qualcomm and TSMC recorded similar losses.

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Challenges

Import rates can dramatically affect companies like AMD and Intel, even with chips still free of punitive rates. If PCs are 20% more expensive in the US, the demand for these products must fall And companies’ roles will devalue even more.

AMD and Nvidia have outsourced production in Taiwan, China and Malaysia. Intel has 30% of its outsourced production and needs to reduce dependence on external manufacturing tools.

With import tariffs, costs are high in a scenario where there are uncertainties about Intel’s demand for products. In addition, the company needs a success with the Panther Lake processor (18a technology) that will be launched at the end of the year.

In short, Intel’s problems are not limited to the new Trump administration fares, with the company already in a fragile situation.

Ancient crisis

Intel’s critical situation is not today, although it gets worse with the new import rates announced by the Trump government. In August last year, the company dismissed 15,000 employees, cutting $ 60 billion in costs. In the same month, the company already had the same value as Open AI.

Other figures that indicate the precarious situation are that in March this year, Ryzen processors sold three times more than their Intel competitors. With this, AMD has earned an income five times higher than its competitor.

It has been less than a month since Lip-BU Tan took over as new CEO of Intel. It was well received by the market, drawing the company’s plans to accelerate the restructuring of the chip giant. In his first conference, Lip-BO Tan promised to fix “what’s wrong” with the company, but he may not have time to fix everything.

Evident that not everything is lost. In February, Intel registered the second largest growth in 2025 after promising USA chips in the US. However, the company is still at risk.

Font: sewingalpha.