Intel is teaming up with top financial advisors, including Morgan Stanley, to explore strategic alternatives as it grapples with mounting challenges.
A source familiar with the situation revealed that Intel’s board will review these options at a pivotal meeting in September.
The potential strategies on the table include splitting off or selling parts of the business.
Intel’s shares surged 10% on Friday following the news, underscoring the high stakes and investor anticipation surrounding the company’s next moves.
CEO Pat Gelsinger, addressing concerns at Deutsche Bank’s Technology Conference, acknowledged the urgency and need for agility in Intel’s operations.
He emphasized that the company understands investor skepticism and is working to address it.
Despite the challenges, he confirmed that Intel is on track to roll out its next-gen laptop processor, Lunar Lake.
Yet, investor confidence remains shaken. Intel’s stock has plummeted nearly 60% this year, with Nvidia, a leader in AI-centric graphics processing units (GPUs), outpacing Intel’s once-dominant position.
Intel’s recent earnings report added fuel to the fire, prompting a decision to cut 15,000 jobs to slash costs.
However, these measures have done little to quell investor anxiety.
Gelsinger mentioned that the company’s foundry business has attracted interest from around a dozen potential customers, but the substantial investment required continues to weigh heavily on the company’s financial outlook.
As Intel navigates these turbulent waters, all eyes are on its next strategic moves—a make-or-break moment for the tech giant.
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