Why is Intel Fizzling Out?

After Apple announced a couple months ago that they would no longer be relying on Intel for its processors, the stock was surprisingly unaffected. However, now that Intel has proven Apple’s lack of trust, the stock is dwindling. After announcing earnings last week, Intel (INTC) released that their new 7-nanometer processors would be delayed another 6 months into 2022, even though it had already been delayed before. Intel’s unreliability has been in question for years, and with the competition for chip makers rising especially from the likes of Qualcomm (QCOM), who Apple is now doing some business with, Intel seems to be putting itself in a deep hole. After announcing the delay Friday morning, Intel dropped an alarming 16%, with minimal signs of slowing the free-fall over the coming weeks. On the flip side, another large competitor to Intel, Advanced Micro Devices (AMD), rose 16%, surely off the troubling news released from its inferior chip maker.

-Darnel Shillingford

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