(Reuters) – Intel, which is currently slashing thousands of jobs in a bid to remain competitive in the rapidly evolving chip industry, sold its 1.18 million share stake in British chip firm Arm Holdings during the second quarter, as revealed in a regulatory filing on Tuesday.
According to Reuters calculations, the sale would have generated approximately $146.7 million based on the average price of Arm’s stock between April and June.
Earlier this month, Intel announced it would be cutting more than 15% of its workforce and suspending its dividend due to declining demand for traditional data center semiconductors and a market shift towards AI chips, where Intel lags behind rivals like Nvidia.
Despite its challenges, Intel is focusing on developing advanced AI chips and expanding its manufacturing capabilities for hire, aiming to regain the technological advantage it once held over Taiwan’s TSMC, the world’s largest contract chipmaker. However, this strategic push, led by CEO Pat Gelsinger, has increased costs and squeezed profit margins, prompting the need for significant cost reductions.
When contacted by Reuters about the share sale, both Intel and Arm declined to comment.
Benchmark Co analyst Cody Acree remarked, “This move aligns with the restructuring plan and renewed focus on liquidity and efficiency that Gelsinger emphasized in the last conference call.”
As of the end of June, Intel, based in Santa Clara, California, had $11.29 billion in cash and cash equivalents, with total current liabilities of approximately $32 billion.
Intel’s stock has plummeted over 59% this year, taking a sharp 26% dive on August 2 after the company suspended its dividend. The stock remained nearly flat in extended trading on Tuesday.
