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I don't understand why it didn't affect the stock price more. This is a big deal.

vxNsr 9y ago
Because most people don't know what any of this means. To nearly everyone else it sounds like Intel was hacked. But so what? Nearly every company has been hacked in the last three years, so it just doesn't seem like such a big deal. Obviously this is completely wrong but it's how the general public and walstreet will interpret it.
dx034 9y ago
Because it won't change Intel's future value if buying decisions don't change. I don't expect people to shift away from Intel because of this so wouldn't expect revenues or income to drop. Unless they get hit with lawsuits (unlikely for a bug), this shouldn't affect their business too much.
- gozur88 9y ago
  It's difficult for me to imagine they won't get sued over this, and in a big way. Imagine if you're Amazon or Microsoft looking at a 30% reduction in salable CPU resources. Plus a huge class action suit from consumers based on false advertising or some related claim.
  - dx034 9y ago
    Bugs happen. Their verification process was probably subpar but I'd be surprise if lawsuits were successful in this case. I'm not sure if they buy processors from Intel with a performance promise (benchmark values). If not, no promise has been broken with this.
phyller 9y ago
I expect this is more of a positive for AMD than a negative for Intel. Perversely, this incentivizes people to get newer chips more quickly. If trust in Intel is not lost completely, and Intel puts out new chips that do not have this vulnerability, Intel could actually get more sales out of it. If the new chips were going to have a 30% performance boost, now it looks like they will have a 50% performance boost. Much more compelling.
rdtsc 9y ago
Because for every two people who panic and sell there is one who is waiting for the price to drop and buy. The same kinda happened with Equifax - went down from $140 to $90 then started climbing back up. Now is at $120 which is also where it was last year in January. So basically nothing changed for them in a year. They didn't get crushed and bankrupted like many were saying they would. I remember at least people in /r/investing gloating how they made a good amount of money waiting for Equifax to drop and then bought it and sold it as it went back up. The same people are waiting for everyone to panic sell their INTC so they can buy it.

Because most people don't know what any of this means. To nearly everyone else it sounds like Intel was hacked. But so what? Nearly every company has been hacked in the last three years, so it just doesn't seem like such a big deal. Obviously this is completely wrong but it's how the general public and walstreet will interpret it.

dx034 9y ago

Because it won't change Intel's future value if buying decisions don't change. I don't expect people to shift away from Intel because of this so wouldn't expect revenues or income to drop. Unless they get hit with lawsuits (unlikely for a bug), this shouldn't affect their business too much.

gozur88 9y ago
It's difficult for me to imagine they won't get sued over this, and in a big way. Imagine if you're Amazon or Microsoft looking at a 30% reduction in salable CPU resources. Plus a huge class action suit from consumers based on false advertising or some related claim.
- dx034 9y ago
  Bugs happen. Their verification process was probably subpar but I'd be surprise if lawsuits were successful in this case. I'm not sure if they buy processors from Intel with a performance promise (benchmark values). If not, no promise has been broken with this.

phyller 9y ago

I expect this is more of a positive for AMD than a negative for Intel. Perversely, this incentivizes people to get newer chips more quickly. If trust in Intel is not lost completely, and Intel puts out new chips that do not have this vulnerability, Intel could actually get more sales out of it. If the new chips were going to have a 30% performance boost, now it looks like they will have a 50% performance boost. Much more compelling.

rdtsc 9y ago

Because for every two people who panic and sell there is one who is waiting for the price to drop and buy. The same kinda happened with Equifax - went down from $140 to $90 then started climbing back up. Now is at $120 which is also where it was last year in January. So basically nothing changed for them in a year. They didn't get crushed and bankrupted like many were saying they would. I remember at least people in /r/investing gloating how they made a good amount of money waiting for Equifax to drop and then bought it and sold it as it went back up. The same people are waiting for everyone to panic sell their INTC so they can buy it.