A sign is posted in front of Intel’s headquarters in Santa Clara, California, on August 1, 2024.
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Intel has sold its 1.18 million shares in British chip company Arm Holdings, according to a company. Supervision filingThe California chip designer has shored up its balance sheet amid fierce competition.
The sale disclosed Tuesday could have raised nearly $147 million for Intel, based on Arm’s average share price between April and June.
According to Intel, as of the end of June, it had $11.3 billion in cash and cash equivalents and about $32 billion in debt. Latest financial data.
The divestment from Arm comes at a tumultuous financial period for Intel, which is going through what CEO Pat Gelsinger called “Intel’s largest transformation since its transformation into memory microprocessors four decades ago.” Reorganization”.
In early August, Intel announced a $10 billion cost-cutting plan that would lay off about 15,000 employees, eliminate its fiscal fourth-quarter dividend and reduce capital expenditures.
Meanwhile, Intel reports that Quarterly results worse than expected and issued brief guidelines for this issue. The results are as follows Intel’s stock price suffered its largest one-day drop in 50 years, falling 26%.
The chip company, which both designs and manufactures its own chips, has struggled to keep up with other semiconductor rivals as competition intensifies due to the boom in artificial intelligence.
Gelsinger said the company’s recent losses were compounded by its decision to faster produce Core Ultra PC chips used to handle artificial intelligence workloads.
Competitors such as AMD and Qualcomm They have also been racing to launch more chips focused on artificial intelligence in pursuit of success. NVIDIA.
Under Gelsinger, the company has also sought to grow its troubled chip foundry business and regain market share lost to Taiwan’s dominant players. British Semiconductor and Korean Samsung recent years.
Intel and Arm declined to comment on the sale when contacted by CNBC on Wednesday.
Intel’s shares have lost nearly 60% so far this year, according to LSEG, but were slightly higher in after-hours trading.
Arm’s stock price has performed well since its IPO last September, rising nearly 65% so far this year.
Japanese SoftBank Group Owns a majority stake in Arm and has been a beneficiary of the company’s rising stock price.
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