Trends
Intel rises as report of chipmaker exploring options cheers investors
OUR TAKE Intel’s disappointing quarterly report in early August, coupled with the company suspending its dividend and announcing layoffs that affected 15% of its workforce, exacerbated the stock’s decline. Intel shares are down about 60% year to date, while AMD shares are down less than 2% year to d…
Headline
OUR TAKE Intel’s disappointing quarterly report in early August, coupled with the company suspending its dividend and announcing layoffs that affected 15% of its workforce, exacerbated the stock’s decline. Intel shares are down about 60% year to date, while AMD shares are down…
Context
OUR TAKE Intel’s disappointing quarterly report in early August, coupled with the company suspending its dividend and announcing layoffs that affected 15% of its workforce, exacerbated the stock’s decline. Intel shares are down about 60% year to date, while AMD shares are down less than 2% year to date. Nvidia shares have more than doubled this year. –Zora Lin, BTW reporter Intel shares rose more than 3% in early trading on Friday after a report that the struggling chipmaker was exploring options that could include a merger or break-up sparked enthusiasm among some investors after one of its worst slumps in decades.
Evidence
Pending intelligence enrichment.
Analysis
The company is working with investment bankers and considering various options such as separating its flagship product business from its money-losing manufacturing unit, Bloomberg News reported on Thursday. Building and expanding chip production bases is central to Intel’s transformation efforts, which focus on becoming a contract manufacturer for other chip companies – a capital-intensive effort that has strained the company’s finances. Intel’s market value fell below $100 billion in early August for the first time in three decades. On Friday, the company’s market value is expected to increase by more than $4 billion. Also read: Intel CEO to present divestiture and cost-cutting strategies to board
Key Points
- Intel shares rose more than 3% in early trading on Friday as the company works with investment bankers and considers its options.
- Expanding its chip manufacturing base is central to Intel’s transformation efforts, which are focused on becoming a contract manufacturer for other chip companies.
Actions
Pending intelligence enrichment.
