Intel Gets Sued over 6 to 12 month 7nm Delay
Last week Intel took a turn downwards in share prices when they announced that their 7nm products will be delayed by another 6 to 12 months. It seems that investors are fed up with it, and now are suing Intel for not disclosing the delay sooner then they did.
As a result, the share prices which were close to 60 USD a month or so ago, now have dropped below the 50 USD marker at 48 USD. It seems investors are losing patience and faith in the company. Law firm Hagens Bermans who represents the investors, Intel has misrepresented progress around 7 nanometers and therefore did not give investors a fair portrayal of the state of affairs. Intel's competitor AMD has already been active on the 7nm node ever since the 7th of the 7th last year.
The chip manufacturer previously indicated that the production process had to be operational by 2021. However, this will now be delayed for six to twelve months. In a market study by Bernstein Research concluded that the recently released quarterly report was "the worst report Intel has released in 42 years." Intel's share price has fallen more than 20% since last week.
Sources: Newsfile , Tom's Hardware via hardware.info
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I’m going to go off on a limb here but in the sense of: I want to have my cake & eat it too?
Senior Member
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Joined: 2015-11-13
I kinda doubt that they have a solid case here. Maybe it's just a few smaller investors who just hope to get their nuisance fee from Intel to go away. Because I don't think there is a way for them to show that Intel knew about the problems long before that and just kept the shareholders intentionally in the dark.
To solve their problems though, Intel requires a new architecture, which is something they likely didn't work on throughout the years and it will take them a few more to deliver. They do have enough cash to survive that for sure. So maybe shares will drop, but in a few years they will recover.
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Posts: 8192
Joined: 2010-11-16
OK, I don't think you know how markets work.
Investors may be "gambling" their money, but if you play with marked cards then there´s trouble.
LOL this is for chumps
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Posts: 14
Joined: 2019-12-15
The investors are acting stupid. When you buy a car you buy into the promise that the car can perform. If you buy a toyota and expect to do 100km in 2 seconds, you are fooling yourself. You got to do your own research and make sure you are not caught unaware. Investors are trying to get out of this situation because they didn't do their due diligence
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isnt it ironic how the same forces that pushed intel into this disastrous path are now complaining about it?