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Intel Share: August 2 proved to be a Black Friday for Intel, one of the world's leading chip manufacturing companies. The company's shares fell by about 28 percent. This was the biggest crash in the company's 50-year history. Due to which the company suffered a loss of $35 billion in a single day.
What causes the crack?
The company's shares fell 7.57 percent to close at $21.48. Intel announced layoffs on Thursday. The company had announced layoffs of 15 percent of its employees. This decision will affect about 18000 employees. Due to which Intel has suffered huge losses in the manufacturing business.
Shares of many chip manufacturers plunged
Apart from Intel, there were many other chip companies whose shares saw a decline on Friday. These included Micron Technology, GlobalFoundries and TSMC. All these companies are listed on the US stock market. However, the biggest outrage came from Intel itself. Along with announcing layoffs, Intel has also announced a dividend freeze.
Intel's market value could fall to $90 billion
With Intel's stock falling, there are now fears that the company's market value could drop to around $90 billion. It is unable to compete with Nvidia in the age of AI. However, Intel has planned to spend $100 billion on the product. The company has assured investors that it is moving in the right direction. However, experts say that it may take several years for Intel to implement this plan.