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Investors indifferent about Intel fine

by Scott Bicheno on 13 May 2009, 18:29

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD)

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And?

Speculation has been rife about the implications of the European Commission's record billion euro fine imposed on Intel for anticompetitive business practices. Will it force Intel to change the way it does things? Is it good news for AMD?

The combined wisdom of the stock market, however, seems to have concluded it doesn't mean that much in the great scheme of things.

Intel's share price actually jumped on the news - implying worse was feared - before moving to more or less level at time of writing. AMD's shares have managed a bit of a lift, but not much.

The following screenshots were taken from Google Finance at around 18:00 GMT.

 

 



HEXUS Forums :: 7 Comments

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1 billion euros is pretty poor how much money did they stop amd from making over the years from these practices.
haha, not even investors care….
the market doesn't respond instantly, the day the news is confirmed, the stock will go down. AS in, we've got months if not years of appeals before any fine goes through, till that happens intel continue to make money hand over fist and this news is largely irrelevant.

I'm under the impression that an appeal will be successful most likely in at least reducing the fines, they'll argue that even if they didn't pay the likes of dell or whoever else to not stock amd, and other companies they paid, amd really couldn't have manufactured enough chips to supply them which is a valid point.

Either way, 1billion 500million, or nothing to be paid is a long way down the line before it happens hence the stock didn't go down.

Remember RBS announced a massive loss, plus almost 4 billion iirc in bad debt fee's to go with it and their stock went up again IIRC around 20% that day. Such is life, AMD also announced some bad news and their stock went up.

Remember while some people think the fine was high, other people will think its lower than they had assumed, this case wasn't out of the blue so the share price over months by the people who know these things is where it is at including the knowledge of the likely fine and a guess of how much it would be.

It went up not because of the fine, but because the tech sector, well Intel/amd have done great the past week. AMD peaked at 4.67/4.70 today, the highest its been in months, up almost a dollar compared to 2 weeks ago at 3.80 where it had been bouncing up and down between 3-3.80 for near enough a month.
where does the money go?
shaffaaf27
where does the money go?

Rebate on EU contributions.