Intel Sells Stake in UK Chip Designer Arm Amid Restructuring and Cost Cuts

👉 Key Highlights:

📍 Intel sells 1.18 million shares in UK chip firm Arm Holdings.

📍 Sale likely raised Intel nearly $147 million based on average stock prices.

📍 Intel holds $11.3 billion in cash, with $32 billion in liabilities as of June.

📍 Intel undergoing major restructuring, including a $10 billion cost-reduction plan.

📍 Plan includes 15,000 job cuts, dividend elimination, and reduced capital expenditures.

📍 Intel reported worse-than-expected quarterly results and light guidance.

📍 Intel’s stock dropped 26% in its largest single-day decline in 50 years.

📍 Intel faces intense competition from AMD, Qualcomm, and Nvidia in AI chip development.

📍 Intel aims to grow its chip foundry business to regain market share from TSMC and Samsung.

📍 Arm’s shares have risen nearly 65% year to date since its IPO.

👉 Context/Background:

Intel's decision to sell its stake in Arm Holdings is part of a broader strategy to restructure and cut costs amid fierce competition in the semiconductor industry. With significant financial challenges, including worse-than-expected earnings and a substantial stock price decline, Intel is focusing on reducing expenses and streamlining operations. This move reflects Intel's need to strengthen its financial position as it contends with rivals like AMD and Nvidia, who are capitalizing on the AI boom.