7 nano chip plan frustrated Intel shares plummeted 16.24percent

 7 nano chip plan frustrated Intel shares plummeted 16.24percent

In a conference call on Intels earnings report later Thursday, Bob swan, Intels chief executive, told investors that the companys new 7-nanometer chip technology was six months behind schedule and that Intel might pay to commission its own chips to other manufacturers.

For decades, Intel has been designing and manufacturing its own personal computers and server chips, which puts Intel at the forefront of its competitors. If we get rid of this mode, i.e. design chips by ourselves, but the manufacturing process is done by other manufacturers, Intel may lose its advantage in front of its competitor AMD.

Intels bad news pushed Intels share price down sharply, but pushed AMDs share price up. Intel shares fell $9.81, or 16.24%, to 50.59 on the Nasdaq Stock Exchange on Friday, while amd shares rose $9.83 to $69.40, up 16.50%.

Stacy Rasgon, an analyst at Bernstein, an investment research firm, said in a research report to clients that this is the 45th time that we have participated in the Intel earnings conference call, and this is the worst performance we have seen since intel was included in our research coverage. The investment research firm downgraded Intels stock rating to underperformance..

To be frank, Intels performance numbers dont matter, Rasgon wrote in the study. In fact, investors may not read the fourth line of the first page of the financial report because they already know that Intel 7 nanotechnology is one year behind its internal plan.

Intels failure in chip manufacturing means that TSMC, its rival in chip manufacturing, has one less competitor, and TSMC may have another potential customer. TSMC, the worlds largest manufacturer of chip manufacturers, rose 12% on Friday.

On Friday, shares of chip manufacturing equipment makers klacorp, applied materials and asmlholding fell by 2% to 6% in the US stock market on Friday, as the market expected Intel to significantly weaken its construction and upgrade manufacturing capabilities. NVIDIAs shares rose 1.1% on Friday to a market capitalisation of $252 billion. The companys market value surpassed Intel earlier this month, falling to $217 billion after Fridays share price crash. (Tianmen Mountain)

Source of this article: Zhang Zutao, responsible editor of Netease science and Technology Report_ NT5054