Intel Corporation (NASDAQ:INTC) faces a potential class action lawsuit over reported instability issues in its latest processor generations.
Intel Corporation, the semiconductor giant, is facing a potential class action lawsuit over reported instability issues in its latest processor generations while simultaneously grappling with significant stock underperformance.
At the time of this writing, Intel stock was trading at $29.93, down 2.63% over the day, although some of the decline could be attributed to a broader market decline in today’s trading session.
Intel Faces Potential Lawsuit Over Processor Instability Issues
Abington Cole + Ellery, a law firm specializing in class actions, has launched an investigation into crashing and instability issues affecting Intel’s 13th and 14th Generation Core ‘Raptor Lake’ processors.
The probe could potentially lead to a class action lawsuit against Intel on behalf of customers. The issue, which Intel attributes to elevated voltages, affects not only high-end models but also mainstream 65W CPUs, potentially impacting tens of millions of units.
Intel has pledged to address the problem, announcing a patch due in mid-August to fix the instability issues. The company has also promised to honor all Return Merchandise Authorization (RMA) requests and replace damaged CPUs. However, the law firm is investigating whether Intel is fulfilling this promise, with conflicting reports emerging about the company’s handling of replacement requests.
Another Challenge for the US Semiconductor Giant, Stock Continues to Underperform
As the potential lawsuit looms, Intel’s stock performance has been lagging significantly behind the broader market. As of 11:26 AM EDT on August 1, 2024, Intel’s stock was trading at $29.93, down 2.63% for the day. The company’s year-to-date return of -40.02% stands in stark contrast to the S&P 500’s gain of 14.94% over the same period.
Intel’s underperformance extends beyond the short term. The company’s 1-year, 3-year, and 5-year returns all trail the S&P 500 by wide margins. With a current market capitalization of $127.42 billion and a price-to-earnings ratio of 31.69, Intel faces the challenge of rebuilding investor confidence amidst technical issues and market share pressures.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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