What Are the Significant Events Driving Intel’s Stock Price?



Significant events driving Intel’s stock price

In the previous part of the series, we discussed the potential impact of US tariffs on Intel in the future. In this article, we’ll discuss some of the other non-tariff reasons behind Intel’s stock price movement.

Intel (INTC) stock had beaten the NASDAQ Composite and the semiconductor industry indexes most of the time between April and June. However, it lost significant value toward the end of June and was followed by some recovery.

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Termination of a long partnership

On January 8, Intel and Micron Technology (MU) announced the termination of their 12-year flash memory partnership in 2019. Both companies preferred to focus on their respective data-centric and NAND technology businesses.

April 26: Q1 2018 results and postponement of chip production

Intel’s EPS grew 32.0% in the first quarter, driven by 13.0% revenue growth and higher margins. Intel’s data-centric business grew 25.0%. The company’s earnings estimates have been beaten only once in the last 20 quarters, while the company has beaten every revenue estimate in the last 20 quarters.

The company also announced the postponement of volume production under its 10nm (nanometer) chip manufacturing process to 2019. Advanced Micro Devices (AMD), on the other hand, disclosed its intention to commence its 7nm chip production by the end of 2018.

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Foray into a new market

Intel tweeted on June 12 about its entry into the discrete graphics market by 2020. This is a market dominated by players like Advanced Micro Devices (AMD) and NVIDIA Corporation (NVDA). NVIDIA held an 80.0% revenue share of the server GPU market in 2017, according to IDC.

The exit of the CEO on June 21

CEO Brian M. Krzanich resigned on June 21. He had pioneered the data-centric transformation of the company. 


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