Intel, a global leader in chip manufacturing, has announced the sale of its 1.18 million shares in the British chip design firm ARM. This move comes as Intel is undergoing a challenging period and restructuring, causing concern among investors. Here are the details:
Intel Divests ARM Shares
Based on the average ARM share prices in the second quarter of 2024, Intel is estimated to have earned around $147 million from this sale. However, experts believe this decision is more about Intel’s strategy to optimize its own operations rather than a decline in confidence in ARM.
Despite these estimates and market analysis, selling $147 million worth of shares might seem like a small amount for a massive company like Intel, but it is still a cause for concern among its partners and shareholders.
Amid these negative developments, Intel CEO Pat Gelsinger has stated that the company aims to lead in advanced AI chip development and production services. However, this strategy brings increased costs. In response to competitive pressures, Intel has announced a $10 billion cost-cutting plan and plans to reduce its workforce by 15%.
According to financial reports, as of June, Intel holds $11.3 billion in cash and cash equivalents, while its short-term liabilities total around $32 billion. The company’s stock value has dropped by 57% since the beginning of the year, reaching a near-record low.
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