Intel Sells Arm Stake for $147 Million, Seeking to Revive Business

Intel Sells Arm Stake for $147 Million, Seeking to Revive BusinessOn August 14th, Intel Corporation sold its entire stake in chip technology giant Arm, totaling about 1.18 million shares, during the second quarter

Intel Sells Arm Stake for $147 Million, Seeking to Revive Business

On August 14th, Intel Corporation sold its entire stake in chip technology giant Arm, totaling about 1.18 million shares, during the second quarter. Based on the average price of Arm stock during the quarter ($124.34 per share), the transaction brought Intel approximately $147 million. Facing industry challenges, Intel is actively adjusting its strategy to try to regain its foothold in the industry it once dominated.

Earlier this month, Intel released its worst financial report in its 56-year history, causing its stock price to plummet by nearly a third. To get back on track, Intel has announced the layoff of 15,000 jobs and cuts to other expenses. Additionally, the company has suspended its dividend payments, which had been ongoing since 1992.

While the sale of Arm shares brought in extra revenue, Intel still reported a net loss of $120 million on equity investments during the quarter. Intel has not yet responded to a request for comment.

Arm, which went public in what was the biggest IPO of 2023, is currently controlled by Japan's SoftBank Group. As a leader in chip design, Arm licenses its chip design blueprints to the entire semiconductor industry, including companies like Intel. Although Intel is known for developing designs internally, its products have been losing ground in the market, with many competitors adopting Arm-based products.

Intel has faced fierce competition from rivals like AMD and Qualcomm in recent years. These companies, with their Arm-based chips, have gained increasing market share in mobile devices, servers, and other markets.

To address these challenges, Intel is actively investing in new technologies, including artificial intelligence and edge computing. The company is also collaborating with partners to develop Arm-based chips.

The sale of Arm shares is part of Intel's strategic realignment. By selling these shares, Intel can gain more funds to invest in these new technologies. Moreover, the sale of these shares also indicates that Intel has recognized the rise of Arm-based chips.

Despite the challenges it faces, Intel remains one of the largest chip manufacturers in the world. With its strategic adjustments, Intel is expected to get back on track in the coming years.

Overall, Intel's sale of its Arm stake reflects the market pressure it is facing and the adjustments to its own strategy. In an increasingly competitive chip market, Intel needs to actively seek new growth areas to reshape its market position.