Intel has divested its 1.18 million share stake in British chip designer Arm Holdings, as indicated by a recent regulatory filing. The sale, disclosed on Tuesday, is estimated to have generated approximately $147 million for Intel, based on Arm’s average stock price from April to June.
This move is part of a broader strategy by Intel to strengthen its financial position amid a period of significant upheaval. As of the end of June, Intel reported cash and cash equivalents totaling $11.3 billion against liabilities of about $32 billion.
The divestment is occurring alongside a major restructuring initiative, which CEO Pat Gelsinger has described as “the most substantial restructuring of Intel since the memory microprocessor transition four decades ago.” In early August, Intel unveiled a $10 billion cost-reduction plan that includes laying off around 15,000 employees, suspending its fiscal fourth-quarter dividend, and scaling back capital expenditures.
Intel’s financial difficulties have been exacerbated by weaker-than-expected quarterly results and a cautious outlook for the current period, leading to a 26% decline in its stock price—the largest single-day drop in 50 years. The company has been struggling to maintain its competitive edge amid the rapidly growing demand for AI technologies, with rivals like AMD and Qualcomm advancing their own AI-focused chip offerings.
Under Gelsinger’s leadership, Intel is also focusing on expanding its chip foundry business to recover market share from Taiwan’s TSMC and South Korea’s Samsung. Despite these challenges, Intel’s stock showed a modest increase in after-hours trading, while Arm’s shares have surged nearly 65% since its IPO last September, benefiting SoftBank Group, which holds a majority stake in the company.
