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Key Takeaways
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Intel is reportedly having discussions around the possible spin off or sale of its foundry division, which makes chips for other companies.
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The company’s stock is down 60% this year, making it the second-worst performing component of the S&P 500 index.
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The company reported a second-quarter loss of $1.6 billion, and analysts expect a $1 billion loss this quarter.
A report that Intel Corp. (INTC) is considering the spin-off or sale of its foundry business lifted the tech giant’s stock Friday.
Shares of Intel rose nearly 8% following the Bloomberg report, which cited people familiar with the matter. An Intel spokesperson declined to comment.
Intel’s foundry business makes chips for outside companies. A move isn’t likely in the immediate term, however, with multiple options expected to be presented at a September board meeting, the report said.
Recent Struggles
Intel stock is down 60% in 2024, making it the second-worst performing stock among the S&P 500 index.
On August 1, the company said it would lay off 15% of its workforce alongside disappointing quarterly results, which sent shares to their lowest level since 2013. Intel posted a second-quarter net loss of $1.6 billion, and analysts expect another $1 billion in losses this quarter, according to the Visible Alpha consensus.
Reports last week said that Intel’s progress on constructing two new chip fabrication facilities in Germany may be stalled.
Intel’s sliding shares have pushed its market value below a number of other chip giants. That’s a far cry from 2021, when CEO Pat Gelsinger took the reins and the company dwarfed competitors like Nvidia.
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Source: finance.yahoo.com