The moment Huang Renxun's net worth surpassed Intel's market value, he could theoretically acquire Intel on paper. Although this is a joke, it's not impossible.

As the world's largest chip manufacturer, Intel encountered an unprecedented crisis in 2024 and has recently become a takeover target for major players.

In August, Intel released a disastrous financial report, leading to a historic plunge in its share price. Since then, news of a historic layoff of 15,000 employees, as well as factory expansion cutbacks and shutdowns, has emerged.

As a last-ditch effort to turn the tide, Intel plans to separate its chip product division from its manufacturing operations. Apart from attracting external investors, this move primarily lays the groundwork for a potential spin-off.

It has been reported that ARM Holdings approached Intel and discussed the possibility of acquiring its chip product division. Intel explicitly informed ARM Holdings that it would not sell the business. ARM Holdings declined to comment on the matter.

A large portion of ARM Holdings' shares are held by SoftBank Group, and a significant portion of its revenue comes from designing smartphone chips. CEO Simon Segars has been seeking ways to expand the company's influence beyond its industry. A merger with Intel would help ARM Holdings expand its influence and sales. Despite having only a small fraction of Intel's revenue, ARM Holdings' valuation has soared to $156 billion since its IPO last year.

Compared to ARM Holdings, Intel's market value has halved in 2024. As of the end of September, its market value stood at $102.3 billion.

Long regarded as a symbol of American semiconductor prowess, Intel cannot be underestimated. However, the current Intel is no longer the same as it once was. It has lost its leading position in process technology, and is surrounded by formidable competitors. Industry insiders say that Intel is currently implementing a risky multi-year strategy to regain its leadership position, with global implications that intertwine technology, national security, and geopolitics.

While Intel may no longer be what it once was, the United States remains a leader in the semiconductor industry. According to estimates by the World Semiconductor Trade Statistics (WSTS) and Semiconductor Industry Association (SIA), global semiconductor sales will increase from $139 billion in 2001 to $526.9 billion in 2023. Sales of U.S. semiconductor companies have grown from $71.1 billion to $264.6 billion over this period. Competitors from other regions account for 7% and 15% of the market, respectively, a situation that is expected to persist for a long time.

Looking at individual companies, Intel generated revenue of $54.22 billion in 2023, while NVIDIA and Qualcomm reported revenues of $60.9 billion and $35.82 billion, respectively. These three giants control approximately 57% of U.S. semiconductor revenue, and their prosperity is crucial to the U.S. economy as a whole.

Historically, Intel's strengths have lain in the processor and PC markets, and later it expanded into the server sector. In terms of current production, Intel remains the world's largest CPU manufacturer.

Intel simply missed key market transitions, particularly in the era of smartphones and tablets, as well as in AI chips. Its misses paved the way for the rise of NVIDIA, MediaTek, and Qualcomm. Today, the market values of Qualcomm and NVIDIA far exceed that of Intel.

At the same time, Intel lost its lead in process technology to Taiwan Semiconductor Manufacturing Company (TSMC). Currently, TSMC's customers include AMD, Apple, NVIDIA, and Qualcomm, among others, and its market value is several times that of Intel.

With the explosion of generative AI, NVIDIA's market value has nearly tripled in just a year. Despite recent share price volatility, its market value remains near $3 trillion. NVIDIA's strength has also contributed to the skyrocketing net worth of its founder, Huang Renxun, who is now worth over $109 billion and ranks 11th on the global rich list, just over $20 billion shy of the top 10.

It is noteworthy that Huang Renxun's net worth of over $100 billion exceeds Intel's market value, which is considered a great humiliation for Intel. Currently, Intel's market value is less than $100 billion, having halved from its 2023 peak and fallen by more than two-thirds from its all-time high of $62.29.

It is a fact that NVIDIA's market value has tripled in just a year, fueled by the AI chip boom. Practitioners in the tech industry can attest to this trend, as nearly every major tech company is venturing into AI and attempting to develop its own AI products. The surge in demand has overwhelmed NVIDIA's production capacity.

The moment Huang Renxun's net worth surpassed Intel's market value, he could theoretically acquire Intel on paper. Although this is a joke, it's not impossible.

In the opinion of 'Digital Intelligence Research Institute,' while Intel's current market value may be low, its actual value is undoubtedly higher. Perhaps it is Intel's underperforming chip business that has contributed to NVIDIA's success.

Intel is currently experiencing its darkest hour, facing its worst financial performance in 50 years. Its hesitation in embracing the AI boom has come at a cost, particularly as the market eagerly anticipates NVIDIA's Blackwell architecture products.

In summary, Intel's future remains highly uncertain. While it may maintain stable operations without major issues, without technological innovation and financial support from the U.S. government, it is only a matter of time before Intel faces the prospect of a takeover.