Written by Dante Uzel on 14 August 2024 22:36
Intel, which is in the midst of a major downsizing efforts has divested its 1.18 million share stake in British chip firm Arm Holdings, according to a regulatory filing on Tuesday. The sale, which occurred in the second quarter, is estimated to have generated approximately $146.7m, based on the average price of Arm’s stock from April to June.
Intel recently announced plans to cut over 15% of its workforce and suspend its dividend, reflecting a broader shift in focus from traditional data center semiconductors to AI chips, an area where it trails behind competitors like Nvidia.
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According to reports, the company is concentrating on developing advanced AI chips and expanding its for-hire manufacturing capabilities to regain the technological edge it has lost to Taiwan's TSMC, the world’s largest contract chipmaker.
This strategy, under CEO Pat Gelsinger, has led to increased costs and squeezed profit margins, prompting Intel to seek further cost reductions.
Tags: Intel
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