Intel has sold its 1.18 million-share stake in British chipmaker Arm, according to a regulatory filing, as it looks to regain some momentum.
The sale, which likely netted Intel about $147 million based on Arm's average share price in the second quarter of 2024, follows a troubling period for the chipmaker as it undergoes major restructuring and cost-cutting measures.
Intel's decision to sell its stake in Arm is seen as part of its strategy to streamline operations, so is unlikely to reflect a loss of confidence in the British company.
Intel sells Arm shares
Intel is currently facing intense competition, especially in the artificial intelligence chip sector, where it is significantly behind industry leader Nvidia, which was the world's most valuable company for a period in early 2024.
In response to mounting competitive pressure, Intel announced a $10 billion cost-cutting plan that includes a 15% reduction in its workforce, one of the largest tech layoffs in percentage terms since the pandemic-induced layoff season that began in 2022.
The news sent shares tumbling 26% on Aug. 2. Intel has a market cap of $87.52 billion, compared with AMD's $228.41 billion and Nvidia's $2.856 trillion.
Intel CEO Pat Gelsinger's strategy is to reposition the company as a leader in advanced AI chip development and contract manufacturing, but this has led to rising costs.
In June, Intel reported that it had cash and cash equivalents of $11.3 billion, with total current liabilities of about $32 billion. Intel shares have fallen about 57% since the beginning of the year, following a period of steady decline followed by a sharp drop that occurred after the company's announcement.
Following the news regarding Intel's Arm, Arm shares were not negatively affected, however, it remains to be seen what this move means for Intel.
TechRadar Pro Intel was asked for comment on the sale of its Arm shares, but the company did not immediately respond.
