• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Intel offloads stake in UK chip designer Arm amid restructuring push

by August 14, 2024
written by August 14, 2024

Intel has sold its 1.18 million share stake in British chip designer Arm Holdings, raising nearly $147 million.

This move is part of a broader restructuring strategy as the company grapples with financial challenges and intensified competition in the semiconductor industry.

Why did Intel divest its stake in Arm?

Intel’s decision to divest from Arm comes during a challenging period for the company. With cash and cash equivalents at $11.3 billion and liabilities around $32 billion by the end of June, the sale represents an effort to shore up its balance sheet.

The divestment is a component of CEO Pat Gelsinger’s ambitious restructuring plan, described as “the most substantial restructuring of Intel since the memory microprocessor transition four decades ago.”

At the beginning of August, Intel announced a $10 billion cost-reduction initiative that includes cutting approximately 15,000 jobs, eliminating its fiscal fourth-quarter dividend, and slashing capital expenditures.

This comes in the wake of disappointing quarterly results and a light forecast for the current period, which led to the steepest single-day drop in Intel’s stock price in 50 years, falling by 26%.

Intel’s challenges in the AI-driven market

Intel’s difficulties have been exacerbated by its attempts to accelerate the production of Core Ultra PC chips designed to manage AI workloads.

The AI boom has heightened competition within the semiconductor industry, with rivals like AMD and Qualcomm racing to launch AI-focused chips, following Nvidia’s significant success in this sector.

Despite these efforts, Intel has struggled to keep pace with other semiconductor giants.

The company is also attempting to revitalise its foundry business to recapture market share lost to Taiwan’s TSMC and South Korea’s Samsung, which dominate the global chip manufacturing market.

Arm’s strong performance

Arm Holdings, in which Japan’s SoftBank Group holds a majority stake, has seen its shares perform strongly since its initial public offering (IPO) last September.

Arm’s shares have risen by nearly 65% year to date, benefiting SoftBank and contributing to the Japanese conglomerate’s overall portfolio value.

In contrast, Intel’s stock has plummeted by nearly 60% this year, reflecting the company’s ongoing struggles.

However, Intel shares saw a slight uptick in after-hours trading following the news of the sale, according to data from LSEG.

Way forward for Intel

Intel’s sale of its stake in Arm signifies a shift in focus as the company seeks to navigate through a period of significant financial pressure and restructuring.

The move may provide some relief to Intel’s balance sheet, but the company still faces considerable challenges ahead as it competes with rapidly advancing rivals in the AI-driven semiconductor market.

The divestment from Arm is just one of several strategic decisions Intel has made recently, all aimed at positioning itself more favourably in an increasingly competitive industry.

The effectiveness of these efforts, however, remains to be seen as Intel continues to grapple with both internal and external pressures.

The post Intel offloads stake in UK chip designer Arm amid restructuring push appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Romanian heatwave triggers severe drought, wipes out 90% of sunflower, corn yields
next post
Is Google about to break up? US DoJ mulls over historic move to curb ‘illegal monopoly’

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Dogecoin and Shiba Inu: Doge continues on the positive side

    September 12, 2024
  • African war-torn nation invokes Trump ‘golden age’ for minerals deal in exchange for booting violent rebels

    March 20, 2025
  • Key House projection spells trouble for two Republican lawmakers

    November 1, 2024
  • No signal, no problem: Intelligence firm debuts drone tech equipped to beat GPS jammers

    March 25, 2025
  • Greenland government calls Trump’s acquisition talks ‘unacceptable’

    March 16, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,385)
  • Investing (634)
  • Stock (844)

Latest Posts

  • Shutdown standoff looms in Congress’ final weeks before Trump’s return to White House

    November 8, 2024
  • USSS assistant director encouraged to retire over Butler assassination attempt on Trump, source reveals

    September 10, 2024
  • Election integrity group dishes out $50K to whistleblowers, 6-figure Olympics ad buy: ‘We’re watching’

    July 25, 2024

Recent Posts

  • JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally; stock falls

    May 19, 2025
  • ‘Watermelon head’: Trump trolls Democratic Sen Schiff

    April 9, 2025
  • Newly surfaced report provides more clues on COVID outbreak source and timeline

    April 10, 2025

Editor’s Pick

  • Trump downplays signs of MAGA unrest over possible military strike on Iran

    June 19, 2025
  • Ethereum is pulling back again after yesterday’s failure

    August 30, 2024
  • Xi stands with Putin against ‘international bullying’ amid Trump trade war

    May 8, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock