Intel executives are working closely with a group of financial advisors, including Morgan Stanley, to develop a range of strategic options in response to the company’s ongoing business challenges, CNBC reports.
According to a source familiar with the situation, these options will most likely be presented to Intel’s board of directors at a meeting scheduled for September.
The advisors are reportedly considering a variety of potential strategies, which could include the sale or separation of certain business units. This exploration of strategic alternatives comes as Intel faces increasing pressure from investors, who have grown skeptical about the company’s ability to recover its former market dominance.
Intel CEO Pat Gelsinger acknowledged the concerns of investors during a recent appearance at Deutsche Bank’s Technology Conference, emphasizing the company’s commitment to operating with greater efficiency and agility. Despite these assurances, Intel’s stock has plummeted nearly 60% this year due to stiff competition, particularly from Nvidia, which has outpaced Intel with its cutting-edge graphics processing units (GPUs) that power advanced AI technologies.
The company has also been dealing with the fallout from a disappointing earnings report earlier this month, which prompted the announcement of 15,000 job cuts as part of a larger cost-cutting effort. While Intel’s foundry business has sparked interest from a dozen potential customers, expanding this segment remains a costly endeavor.
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