There S1 claims so, but, also, it’s financials cut off… suspiciously right as a bunch of pre payments for their services came in, and before they deferred payments for compute went out.

Not to mention that he basically was holding the money already promised to Intel from the chips act hostage until they bribed him with shares.

The dip was also largely trumps fault for with holding money that had already been promised to Intel from the chips act, despite Intel having already spent a bunch of their own money on building new production lines.

Intel just came out of a floundering period of underinvestment, took on a lot of debt to recapitalize a bunch of stuff and was promised government money to help. Trump withheld money approved under the chips act, until they promised to give him shares in return.

The share prices(20$ in august 2025) was pretty aggressively depressed by the fact that the money had been withheld after Intel had already spent that money on new production lines and recapitalization. It popped up when the government funding finally came through.

Over the past 2 years, they’ve made some pretty impressive increases in revenue, largely from “foundry services” and sales of their chips to data center buildouts(still need CPUs even if all the focus is on memory and GPUs). Foundry services being where they do the manufacturing for a third party who designs and sells the chips (like TSMC does), where in the past Intel has only produced their own designs. Both of these have been helped by all that investment that was costing them so much.

The problem lately has been that they’ve been getting over valued due to datacenter mania (130$ a share at the end of June 2026). Everyone assuming growth on the datacenter side will continue at the same pace… forever. Now everyone’s concluding that maybe, that’s a bit unrealistic, so their share price is dropping (about 60$ a share currently).

Their share price is still 3X what it was 2 years ago, and revenue is up 10 billion as well. A large part of that being the foundry services, not just the datacenter side.

Intel makes most of it’s money selling to data centers and renting out it’s manufacturing capabilities to companies, they do make a lot of money selling chips for computers still but that hasn’t seen a huge decline. This selloff is more due to concerns about the datacenter side of the business.

These sell offs are about projected future revenue, and what analysts think is likely. The sell of tells us those folks are worried about the future rate of datacenter construction not growing, and thus demand for chips to go in to them also not growing.

intel’s sales to datacenters and their foundry services (making other people’s chips) are larger than their sale of chips for PCs, has been for over a year now. Even a decade ago intel only made slightly more from PC sales than they did datacenters. They’ve been huge in the server world ever since Lin-tel systems devoured sun’s market share in the 2000s.

Not mentioned in the article but TSMC (company that actually manufactures the chips for everyone (except intel who manufacture their own designs)) has lost nearly 17% of it’s stock price over the past month, 7% in the last week.

All of these companies were being valued based on the assumption that the number of GPU data centers being built would increase as time went on. Essentially that the demand for the these various products would not just stay as high as it is, but keep getting higher.

This is just a bunch of analysts saying “ok, well, maybe the number of data centers being built will not increase drastically, and the demand for these products will stay the same”. The real blood bath comes if they start saying “there will be less datacenters constructed next year than there are currently under construction.”

The current shift in sentiment probably comes from the “disappointing” info from the companies that would be buying all the compute from the data-centers. Google missing ad revenue growth targets due to Gemini cannibalize search. Anthropic preparing to IPO and being forced to show less than stellar financials.

I suspect that this down turn is temporary and Valuations will rise angain and we will see another big crash before this hype cycle truly dies.

New information has come to light that makes them believe that the growth they expected would occur in the future will be smaller than they previously thought. So they haven’t lost any money, except for the people who were betting on the potential future growth being higher.

Ok, but robot pickers are expensive capital costs, and are set up to work in a warehouse environment with boxes, not a retail store full of soft goods and shelves. Unless you’re talking about recapitalizing the entire store to be a wearhouse, in which case there is a huge opportunity cost in regards to using good retail realestate for a warehouse.

Gonna have to use human pickers unless the grocery store is willing to completely recapitalize and the margins might not justify the high cost of retail real estate.

Nah, it would be more expensive since they would need to hire more pickers. also would probably loose customers who wouldn’t want someone else picking out their groceries.