Intel Sells Arm Holdings for $150 Million
August 16, 2024
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Intel Corp., a company facing significant challenges in the semiconductor industry, sold its stake of 1.18 million shares in processor IP licensor Arm Holdings during the second quarter of 2024. According to a report from EENeweurope’s Peter Clarke, the move likely netted Intel approximately $146.7 million, based on the average trading price of Arm’s shares between April and June.
The sale comes as Intel is implementing several measures to address notable financial struggles. The company recently announced plans to cut 15,000 jobs, or roughly 15% of its workforce, along with slicing capital expenditures and suspending its dividend. These decisions followed the release of concerning financial results for the second quarter of 2024.
Despite these setbacks, Intel seems to remain committed to its ambitious "five-nodes-in-four-years" roadmap, which Intel claims is nearing completion, Clarke reports. It remains to be seen whether this aggressive technological push will be enough to reverse the chipmaker’s fortunes.
In contrast, fabless chip companies such as Nvidia and AMD continue to thrive in the current market. These companies rely on TSMC for the production of their advanced AI processors for data centers.
As of the end of June 2024, Intel reported having approximately $11.29 billion in cash and cash equivalents, though this is overshadowed by its approximately $32 billion in liabilities.
Intel dropped to rank third amongst chip firms in the first quarter of 2024, Clarke reported in early July.
"In 1Q24 Samsung took the top spot thanks to returning demand for memory chips, especially for DDR5 used in datacenters for generative AI configurations," he noted. "Nvidia was ranked second by Counterpoint, after recording another quarter of phenomenal revenue growth (see Nvidia continues to quadruple sales year-on-year). Nvidia’s success is based on its dominance of the GPU-for-AI chip market and the spread of generative AI driving a sales boom in the data center segment."
Editor's note: Our colleague Peter Clarke first reported on this in EENews Europe, a publication in the Elektor network.
The sale comes as Intel is implementing several measures to address notable financial struggles. The company recently announced plans to cut 15,000 jobs, or roughly 15% of its workforce, along with slicing capital expenditures and suspending its dividend. These decisions followed the release of concerning financial results for the second quarter of 2024.
Despite these setbacks, Intel seems to remain committed to its ambitious "five-nodes-in-four-years" roadmap, which Intel claims is nearing completion, Clarke reports. It remains to be seen whether this aggressive technological push will be enough to reverse the chipmaker’s fortunes.
In contrast, fabless chip companies such as Nvidia and AMD continue to thrive in the current market. These companies rely on TSMC for the production of their advanced AI processors for data centers.
As of the end of June 2024, Intel reported having approximately $11.29 billion in cash and cash equivalents, though this is overshadowed by its approximately $32 billion in liabilities.
Intel dropped to rank third amongst chip firms in the first quarter of 2024, Clarke reported in early July.
"In 1Q24 Samsung took the top spot thanks to returning demand for memory chips, especially for DDR5 used in datacenters for generative AI configurations," he noted. "Nvidia was ranked second by Counterpoint, after recording another quarter of phenomenal revenue growth (see Nvidia continues to quadruple sales year-on-year). Nvidia’s success is based on its dominance of the GPU-for-AI chip market and the spread of generative AI driving a sales boom in the data center segment."
Editor's note: Our colleague Peter Clarke first reported on this in EENews Europe, a publication in the Elektor network.
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