Pat Gelsinger, CEO of Intel Corp., addressed the Computex conference in Taipei, Taiwan, on Monday, June 4, 2024. Gelsinger discussed new products aimed at regaining market share lost to competitors, including AI leader Nvidia Corp.
Global semiconductor stocks declined on Friday after Intel posted disappointing quarterly results, resulting in a sharp drop in its shares. Intel’s stock plummeted 28% in morning trading after the company announced a significant earnings miss for the June quarter and plans to reduce its workforce by over 15% to achieve a $10 billion cost-reduction goal. Several major U.S. chip companies also saw declines in premarket trading, with Nvidia shares down approximately 4%. The pressure intensified with a report from The Information stating that Nvidia is under investigation by the U.S. Department of Justice (DOJ) for alleged antitrust violations related to market dominance in AI chips.
Nvidia responded, asserting that it competes on merit and adheres to all legal requirements. A spokesperson emphasized the company’s commitment to innovation and compliance with regulations, indicating Nvidia’s willingness to cooperate with the DOJ’s inquiries. CNBC has also contacted the DOJ for comments on the report.
In Asia, Taiwan Semiconductor Manufacturing Co. (TSMC) closed 4.6% lower in Taiwan, and Samsung’s shares dropped over 4% by the end of the session in South Korea. TSMC is the world’s largest chip manufacturer, and Samsung is the leading global memory semiconductor firm. Samsung’s competitor SK Hynix, which supplies Nvidia, also experienced a sharp decline, closing over 10% lower.