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Intel Parts Ways with Arm Holdings, Sells Entire Stake
As Intel's recent challenges continue, the company just sold its 1.18 million share stake in Arm Holdings during Q2, as revealed in a recent regulatory filing, according to Reuters. The sale potentially generated around $146.7 million for Intel, based on Arm's average stock price between April and June. The company recently announced plans to reduce its workforce by over 15% (about 15,000 jobs) and suspend dividend payments, reflecting a downturn in traditional data center semiconductor demand and a shift towards AI chips, a sector where Intel trails competitors like NVIDIA.
CEO Pat Gelsinger is steering Intel towards developing advanced AI chips and expanding its contract manufacturing capabilities, aiming to regain ground lost to Taiwan's TSMC, the industry's leading contract chipmaker. This strategic pivot has increased costs and squeezed profit margins, necessitating cost-cutting measures.
CEO Pat Gelsinger is steering Intel towards developing advanced AI chips and expanding its contract manufacturing capabilities, aiming to regain ground lost to Taiwan's TSMC, the industry's leading contract chipmaker. This strategic pivot has increased costs and squeezed profit margins, necessitating cost-cutting measures.