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Key Takeaways
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Intel is reportedly having discussions across the doable spin off or sale of its foundry division, which makes chips for different corporations.
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The corporate’s inventory is down 60% this yr, making it the second-worst performing element of the S&P 500 index.
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The corporate reported a second-quarter lack of $1.6 billion, and analysts count on a $1 billion loss this quarter.
A report that Intel Corp. (INTC) is contemplating the spin-off or sale of its foundry enterprise lifted the tech big’s inventory Friday.
Shares of Intel rose almost 8% following the Bloomberg report, which cited individuals conversant in the matter. An Intel spokesperson declined to remark.
Intel’s foundry enterprise makes chips for out of doors corporations. A transfer isn’t seemingly within the rapid time period, nonetheless, with a number of choices anticipated to be introduced at a September board assembly, the report mentioned.
Latest Struggles
Intel inventory is down 60% in 2024, making it the second-worst performing inventory among the many S&P 500 index.
On August 1, the corporate mentioned it will lay off 15% of its workforce alongside disappointing quarterly outcomes, which despatched shares to their lowest stage since 2013. Intel posted a second-quarter web lack of $1.6 billion, and analysts count on one other $1 billion in losses this quarter, in response to the Seen Alpha consensus.
Stories final week mentioned that Intel’s progress on establishing two new chip fabrication amenities in Germany could also be stalled.
Intel’s sliding shares have pushed its market worth under a lot of different chip giants. That’s a far cry from 2021, when CEO Pat Gelsinger took the reins and the corporate dwarfed opponents like Nvidia.
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