Intel partners with bankers to provide strategic options to board | Wilnesh News

Intel Executives are working with multiple consultants to develop a solution to its flagging business, according to a person familiar with the matter.

These consultants include Morgan Stanley and other bankers may present options to Intel directors at an upcoming board meeting in September, said the person, who asked not to be identified discussing confidential matters. Advisors are considering a range of options, including spinning off and selling the business, the person said.

Bloomberg News First reported that the company was working with its advisers to develop strategic options. Representatives for Intel and a spokesperson for Morgan Stanley did not immediately respond to CNBC’s requests for comment.

Chief Executive Pat Gelsinger publicly acknowledged Thursday that the company understands investor skepticism and is working to address the issue.

“We realize we have to operate efficiently with flexibility and urgency,” Gelsinger said at a Deutsche Bank technology conference. CNBC previously reported that a number of advisers, including Morgan Stanley, were helping the company defend its activism.

Kissinger said at the meeting that Intel is still expected to launch Lunar Lake, the next generation of notebook central processors. But investors see no improvement, with the stock down nearly 60% this year.

The once dominant company was largely NVIDIAwhich produces graphics processing units (GPUs) that are at the core of today’s famous artificial intelligence models.

In addition to its disastrous earnings report earlier this month, Intel announced it would lay off 15,000 employees. The layoffs are part of a broader focus on cutting spending but have done little to ease investor frustration. Although Gelsinger said Thursday that the company’s foundry business has about a dozen interested customers, Intel’s buildout costs remain high.

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