Intel Corporation (NASDAQ: INTC) shares dropped over 6.4% in last trading session after the Firm’s dismal results and a warning of a shrinking data-center industry on Friday caused several of its major competitors’ stock prices to drop. The chip company failed forecasts for the fourth quarter and issued a revenue forecast for its March quarter that was well below expectations, sending shares of Intel (INTC) down 10% in premarket trade.

To help the business deal with this year’s weaker demand, Intel has already launched a significant cost-cutting program. Cost reductions are expected to equal $3 billion in 2023 and increase to $8 to $10 billion by the end of 2025. In order for Intel to survive one of the worst demand circumstances in company history, layoffs will probably be a factor.

The number of positions being eliminated by Intel Corp. in its Santa Clara headquarters is almost doubling once more. According to letters issued this month to state and local officials, the semiconductor giant now intends to fire 387 workers at its campus on Mission College Boulevard. The business announced earlier this month that it would eliminate 201 jobs in Santa Clara as part of its drive to reduce expenses by $3 billion this year. That figure alone increased from a December original estimate of 90 cutbacks at company headquarters.

Along with its intention to reduce costs by up to $10 billion annually over the following several years, Intel also revealed a seemingly insignificant accounting move that will have a big negative impact on its bottom line. The expected usable life of various production gear and equipment has been raised by Intel from five years to eight years as of January 23.

A shift like this will have a significant influence on the income statement when you’re a firm like Intel, which invests many billions of dollars annually in the machinery required to create semiconductors. The total depreciation expense is anticipated to decrease by $4.2 billion as a result of this accounting change in 2023, according to Intel. That is correct; it is $4.2 billion.

Advanced Micro Devices (NASDAQ:AMD) taking five-year gains to 506%

Advanced Micro Devices, Inc. (NASDAQ: AMD) inched up 0.32% to close at $75.40 in last trading session as for many people, making exceptional returns is the main goal of stock market investing. And over the years, it’s witnessed some genuinely great advancement.

For instance, the share price of AMD has increased by 506% in the last five years. This just serves to highlight the value generation potential of some companies. The share price rising 26% over the previous quarter is also encouraging. We are incredibly happy to see such excellent share price performance for investors.

Let’s check to see if the stock’s fundamental performance has been generating long-term returns given that the stock’s market value increased by US$8.6 billion in the previous week alone.

Shareholders of Advanced Micro Devices fared even worse, losing 28% within the same 12-month period, while the overall market lost around 7.7%. However, it may just be that general market concerns have had an effect on the share price. In the event that there is a good opportunity, it may be worthwhile to keep an eye on the basics. Investors with a longer time horizon wouldn’t be as disappointed because they would have made 43% per year over a five-year period. The recent sell-off can present an opportunity worth taking into account if the basic facts continue to point to long-term sustainable development.

Although it is necessary to take into account the various effects that market circumstances may have on the share price, there are other aspects that are even more crucial. Take chances, for instance – there are two red flags we believe you should be aware of with Advanced Micro Devices.

CEO of Nvidia Says AI will Need Regulation

Nvidia Corp (NASDAQ: NVDA) plunges over 2.53% in pre trading session on Monday as Chief Executive Officer Jensen Huang stated that the developing area of artificial intelligence would provide potent technologies requiring yet-to-be-developed legal regulations and societal standards.

Because Nvidia’s processors are so widely utilized in the industry, notably in a supercomputer that Microsoft Corp. constructed for startup OpenAI, in which Microsoft said Monday it was making a multibillion-dollar investment, Huang is one of the most well-known individuals in artificial intelligence.

Huang was speaking at a gathering in Stockholm, where authorities announced on Tuesday that they were updating Sweden’s fastest supercomputer using equipment from Nvidia to create, among other things, a huge language model that will be proficient in Swedish.

Remember that even though many things in life are either practical, beneficial, or fantastic for society, there is likely some potential harm associated with them as well, Huang said.

A U.S. federal agency to regulate AI has been proposed for by legislators like Ted Lieu, a Democratic representative from California in the U.S. House of Representatives. Lieu stated that techniques like facial recognition employed by law enforcement organizations may mistakenly identify innocent persons from minority groups in an opinion article published in the New York Times on Monday.