Patrick Gelsinger, chief executive officer of Intel Corp., speaks through the Intel Innovation Taipei technology forum in Taipei, Taiwan, on Tuesday, Nov. 7, 2023.Intel last month predicted a return to sales growth within the fourth quarter, fueled by an improving pc market and a more competitive product line. Photographer: I-Hwa Cheng/Bloomberg via Getty Images
I-Hwa Cheng | Bloomberg | Getty Images
Intel executives are working with multiple advisors to formulate options to deal with its flagging business, based on an individual with knowledge of the matter.
Those advisors, which include Morgan Stanley and other bankers, will likely present Intel’s directors with options at an upcoming board meeting in September, said the person, who requested anonymity to debate confidential matters. The advisors are considering a full range of options, including splitting off and selling businesses, the person said.
Intel shares rose greater than 8% on the report in Friday morning trading.
Bloomberg News first reported that the corporate was working with its advisors to provide you with strategic options. Spokespeople for Intel and Morgan Stanley declined to comment.
CEO Pat Gelsinger acknowledged publicly on Thursday that the corporate understood investor skepticism and was working to deal with it.
“We realize we have now to operate efficiently with nimbleness, with urgency,” Gelsinger said at Deutsche Bank’s Technology Conference. CNBC previously reported that some advisors, including Morgan Stanley, were helping the corporate on activism defense.
Intel stays heading in the right direction to launch its next iteration of its laptop central processor, Lunar Lake, Gelsinger said at the looks. But investors don’t see a turnaround on the horizon, and have pushed the stock down almost 60% this 12 months.
The once-dominant company has been trounced primarily by Nvidia, which produces the graphics processing units (GPUs) which might be are the center of today’s outstanding AI models.
Alongside a disastrous earnings report earlier this month, Intel announced it will lay off 15,000 staff. The job cuts, a part of a broader give attention to slashing expenses, did little to assuage investor dismay. And while Gelsinger said Thursday that the corporate’s foundry business had roughly a dozen interested customers, the buildout stays costly for Intel.
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