It’s because computer sales are down because RAM is unavailable because AI companies bought it all on credit because the investors gave them shitloads of market cap because they want to replace PCs with LLMs because they have all these chips that can crunch numbers because semiconductor companies have been building them for LLMs.
Intel makes most of it’s money selling to data centers and renting out it’s manufacturing capabilities to companies, they do make a lot of money selling chips for computers still but that hasn’t seen a huge decline. This selloff is more due to concerns about the datacenter side of the business.
These sell offs are about projected future revenue, and what analysts think is likely. The sell of tells us those folks are worried about the future rate of datacenter construction not growing, and thus demand for chips to go in to them also not growing.
Not mentioned in the article but TSMC (company that actually manufactures the chips for everyone (except intel who manufacture their own designs)) has lost nearly 17% of it’s stock price over the past month, 7% in the last week.
All of these companies were being valued based on the assumption that the number of GPU data centers being built would increase as time went on. Essentially that the demand for the these various products would not just stay as high as it is, but keep getting higher.
This is just a bunch of analysts saying “ok, well, maybe the number of data centers being built will not increase drastically, and the demand for these products will stay the same”. The real blood bath comes if they start saying “there will be less datacenters constructed next year than there are currently under construction.”
The current shift in sentiment probably comes from the “disappointing” info from the companies that would be buying all the compute from the data-centers. Google missing ad revenue growth targets due to Gemini cannibalize search. Anthropic preparing to IPO and being forced to show less than stellar financials.
I suspect that this down turn is temporary and Valuations will rise angain and we will see another big crash before this hype cycle truly dies.
“Sir, we’re mining too many useless minerals.” Hitler: “Mine less then”
Grammar Nazi bursts in
“MINE FEWER.”
Hitler looks over “Yes?”
Somebody call a WAAAAAH-mbulance!
Oh sweet will there be more tech layoffs?
Intel has been overly reliant on pc/laptop sales with vendors like dell, etc for their company history.
Wallstreet pretty stupid if they still don’t understand that there’s a tug of war between pc and data center. If ram, etc are being used up by data centers, pc components won’t be sold. A downturn in pc sales are a given for data center growth.
intel’s sales to datacenters and their foundry services (making other people’s chips) are larger than their sale of chips for PCs, has been for over a year now. Even a decade ago intel only made slightly more from PC sales than they did datacenters. They’ve been huge in the server world ever since Lin-tel systems devoured sun’s market share in the 2000s.
POP! Goes the bubble.
It was a down week, but not unheard of and markets are still up a solid amount going back a year. Retirement accounts are still ahead of 6 months ago most likely, so have some perspective. Prices were too high as it was so maybe more correction, but then funds are on sale each time paycheck buys some shares. Here’s one from three years ago but sounds like could be today, a fan of the blog and want others to do better too! mrmoneymustache.com/2023/09/04/interest-rates/ Also mrmoneymustache.com/2026/09/25/will-the-ai-bubble-destroy-our-retirement/
Lmao
deleted by creator
Fantasy money vanishes, more at 11.
sure, but all fiduciary money is fantasy money
Technology!
Economics!
^ Lemmy’s understanding of economics right here. We’re staring down the barrel of Great Depression 2.0 and the trigger finger tightened over the last three days. Lemmy’s take:
“The stock market is gambling for rich people and nothing to do with the real world. The ‘economy’ and ‘economic indicators’ are for rich people and, being poor, I don’t participate in the economy.” Then goes on to bitch about how the economy is fucking them.
Trying to discuss economics on Lemmy is an exercise in futility, but also the ‘value’ of some of these companies is basically fake money in my opinion.
You are hundred per cent correct, sorry about all the down votes. This crash is looking like it’s going to be a very ugly one. The modelling I’ve done suggests the closest fit is the oil crisis of the 70s, it could be worse than that though.
Meh, it’s social media. If I wanted to play for points on any given platform I know how to do it. Kinda depressing how easy it is and really points to how poisonous social media is.
But the stock market seems to have nothing to do wrih the “real” world anymore or we wouldn’t have to be saying a k shaped economy. Used to be shit was bad for people stokes fell now we have had covid where they didn’t happen and now.
Its still fantasy money. Sure the effects are real but unless the system is overhauled no one here is going to do anything about it. May as well laugh otherwise you’re crying and ripping your hair out in a corner.
So we agree? The effects from this bubble with be real to us on the ground?
Yeah, no one is saying they aren’t but these “major” losses aren’t. The top 1% of wealth owns over 50% of the market the bottom 50% owns less than 1%. To a vast majority stock losses aren’t meaningful until it affects their job. We all know theres a bubble and just hope that there can be improvements after the pop.
No, this is more like the 2008 financial crash, where the underlying problem was pervasive fraud and regulators turning a blind eye.
Unfortunately not. This will be quite unlike the 2008 crash, or the 2000 dotcom bust. It is MUCH more serious than either of these two.
The key difference is the leverage, there is a circle where the suppliers are highly borrowed, and their sales are to companies that are borrowing to buy it. This has a huge knock on effect as the companies in question are a massive slice of the key indexes which means everyone’s pension/401k/super is invested in index funds as the “low risk” option - when the index tanks, the pension funds tank which means the general population are looking at massive drops in wealth. There’s also a bunch of knock on effects
What’s worse is that the current Fed board are on record saying interest rates will go up to control inflation and they’re not going to support the market ( a la 2008) which puts even more pressure on them. The current US govt has flagged in a million ways they are economically incompetent so don’t expect any smart decisions there
There is a very very real probability of “The greatest depression” or the the great depression 2 boogaloo.
We well see been hearing for awhile a nothing happens. Just like Canada’s house crash keep hearing about it for decades and never happened.
Wall Street spent years pricing every chip company as if humanity would soon need a GPU to make toast. Then Intel mentions that people aren’t buying overpriced PCs, and a trillion dollars evaporates. Apparently the most advanced semiconductor technology on Earth still can’t manufacture realistic expectations.
Intel
Realistic expectations
Choose one.
It manufactures billions short term for a few people, who don’t care about the shit storm they created. They’ll be sleeping like babies (or with babies, depends on the billionaire in question) while the rest of the world starves.
You are replying to a bot. This bot posts an article then a 3-4 sentence comment with a witty remark at the end.
Also, putting the following comments as a whole into Pangram gives 100% AI as result (Pangram is known to underreport sooner than to overreport):
Tap for spoiler
Nothing screams disruptive innovation like a billionaire scolding young people for not being excited enough about the technology making entry level jobs disappear. Apparently Gen Z should stop chasing what was cool five years ago and start chasing whatever Sam Altman needs investors to believe is cool this quarter.
Funny how »global allocation efficiency« always ends with everyone renting access from the company whose CEO wants to do the allocating. Local AI offers privacy, independence, and no monthly tollbooth. Apparently the real waste of RAM is letting people control what they own.
Wall Street spent years pricing every chip company as if humanity would soon need a GPU to make toast. Then Intel mentions that people aren’t buying overpriced PCs, and a trillion dollars evaporates. Apparently the most advanced semiconductor technology on Earth still can’t manufacture realistic expectations.
Of course it reeks of AI. We all write like AI now. Half the internet sounds like a chatbot trying to pass as human, and the other half is humans desperately trying to sound like chatbots. At this point, sounding natural is probably the biggest giveaway that you’re a bot.
Cisco just handed a 27 year old unlimited AI tokens and the keys to 98% of its codebase. Somewhere, a senior engineer is quietly updating their resume. Rewriting code is easy. Discovering why that horrifying 1998 workaround exists is the actual final boss.
Intelligence flagged a possible Chinese spy with access to Nvidia’s CEO, and the response was apparently to worry about Nvidia’s share price? So the chips are too sensitive to export, but the intelligence is too sensitive for the stock market? Very efficient system: national security gets the risk, shareholders get the protection.
The best part is that we spent 15 years cutting emissions just so a handful of billionaires could burn the savings teaching chatbots to summarize emails nobody wanted to read. Then they’ll sell us AI powered climate solutions, funded by taxpayers, to clean up the mess. Innovation really is a beautiful circle.
Google spent decades telling publishers to create quality content, then built a machine to read it aloud without sending anyone to the source. Now it’s shocked that the machine makes less money. Congratulations: they’ve invented a search engine that eats both its suppliers and its own business model.
Musk wanted to be Tony Stark. Somehow he ended up with Vladimir Putin in his fan club. The truly dystopian part isn’t the praise: it’s that one billionaire can turn critical communications infrastructure into his personal mood ring while governments keep treating him like a public utility with a podcast.
I’m glad more people are catching on to this bot. I’ve been sounding the alarm on this account since July despite the sea of downvotes that I get for it.
Wait, you don’t make your toast by disabling the fans and then overclocking your GPU? How do you make toast then??
I outsource it to the cloud, obviously. For $29.99 a month, an AI agent sends my bread to a data center, burns through 40 gigawatts, and returns a hallucination of toast. The premium tier includes actual crumbs, but that’s enterprise pricing.
Does it at least include SSO?
SSO is only available on the Enterprise Toast plan. You’ll also need a minimum of 500 seats, a dedicated account manager, and a six month onboarding process.
I won’t do it without a customer success manager hounding me every 2 weeks.
It does! But it’s only a single hard coded user credential that everyone shares.
Excellent. I won’t have to implement a password policy and can just monitor that single password to be strong enough.
I’ll just have to think of a way to share the password with the team. A post-it? An email? Maybe displayed on a big screen in the lobby so the team can see it coming into the office? But then they won’t see it when they WFH.
Ugh! Choices.
I’ll have to think this through! Maybe require people in the office full-time again? They’ll understand right?
Edit: I feel like I should be adding a /s to this juuuuuuust to be sure…
In an unexpected turn of events, the downturn extended to server manufacturers
unexpected? servers are computers full of RAM
Bighorn ram: bahh (“I’m in danger”)
That depends heavily on what the server is used for… But yes, AI servers are full of RAM, and GPUs which have even more RAM on them.
Generally speaking, RAM and RAM performance is one of the most important characteristics of any server that is actually being used. Processing power (single-threaded/multi-threaded depending on application) is the most important, but without the RAM to handle it, it becomes nearly useless.
I guess we’re trying to make it so that, like the car industry, domestic companies only make super expensive products at high margins, and the only affordable products come from China, which we will tariff to oblivion, leaving the populace with no options.
You have just described the current state of the steel industry.
Lol, there’s practically no domestic steel production any more!
Its much smaller than it once was but we definitely still have a domestic steel industry. And it currently has more order volume than it can handle and is raking in the profits while continuing to raise prices.
I think domestically is mostly just scrap steel at this point. They still may do some of the low grade takkanite ore or whatever that is left in the iron range, the largest iron deposit ever found, now cleaned out of the good stuff. All that World War gear and all.
Edit: The Iron range is in northern Minnesota, they shipped it over the great lakes, or down the old muddy, the mississippi that is, which they can reach the ohio and whatever and get it all to the smelters around ohio and Pennsylvania or whatever.
We don’t have any domestic manufacturing left in almost all sectors, after they outsourced, the ones that didn’t follow went out of business, or had to chisel down their workers, their pollution controls, and their quality.
There aren’t US made options left for most stuff, even though we invented most of this stuff and it’s mass production. We handed east asia all of our tech, built their factories for them, on 99 year leases in china, that could be taken away at any moment, and enjoyed making profits on the backs of the exploited masses of Asians and other low cost countries.
Tariffs on these goods is a union issue, that the democrats betrayed the unions let the current president co-opt it to do an end run around the dems on the left, obviously he was always full of shit, but we all know the voters at large don’t know that.
Oh there are still options…there are always options
Huh.
in August, [the US government spent] $8.9 billion for a nearly 10% share of Intel, converted out of CHIPS Act grant money. Today, the federal government is Intel’s largest single shareholder.
Wonder what that 8.9 billion is worth now…
I’ve read somewhere that it is still a more than 200% grow in value, even considering the last dive. Will post the source if I find it again…
EDIT : Here “Even accounting for Friday’s expected drop, the value of the government’s stake in Intel has grown by 280%.”Ah, that’s interesting. Curious if the govt will scoop up more of Intel or stand pat, then. We’re kind of in uncharted waters here.
Why is the government buying any of Intel?
The secret ingredient is crime (corruption)
So they bought 10% for $8.9 billion? So Intel’s market cap is only $89 billion? No, earlier this month it was $350 bn. So what’s going on here?
