A sign is posted in front of Intel’s headquarters in Santa Clara, California, on August 1, 2024.
Justin Sullivan | Getty Images News | Getty Images
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 as the company CEO Pat Gelsinger calls “This is Intel’s largest restructuring since its transition to memory microprocessors four decades ago.”
In early August, Intel announced $10 billion cost-cutting plan That will result in the company cutting about 15,000 jobs, canceling its fiscal fourth-quarter dividend and reducing capital spending.
Meanwhile, Intel reports that Quarterly results worse than expected and issued brief guidelines for this issue. The results are as follows this Biggest one-day drop Intel’s stock price fell 26% in 50 years.
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 have been exacerbated by its decision to speed up production of 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 Kissinger, the company also wanted Grow a troubled chip foundry businessand regain the market share lost to Taiwan’s leading companies British Semiconductor and Korean Samsung recent years.
Intel and Arm declined to comment on the sale when contacted by CNBC on Wednesday.
Intel 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 jump in the company’s shares.
