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Intel shares declined by 19 percent in after-hours trading, with higher memory prices from AI buildout leading to demand destruction in personal computers.
Edward Dowd, who is a founding partner at OceanSquare Asset Mgmt, reported that Intel expects a slowdown to continue into the first half of next year. Dowd also noted that Apple, which has also raised prices because of increased memory costs, is scheduled to report earnings on Monday.
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Earlier this year, Edward Dowd suggested the semiconductor sector reached its peak in June, attributing this to debt-driven demand from speculative activity in the market. He has also challenged recent commentary from Nvidia’s CEO, arguing that CoreWeave's cost of capital is not declining. Dowd’s previous statements add context to his current assessment of slowing demand in the semiconductor space.