Key Takeaways

• Intel is reportedly having discussions across the possible spin off or sale of its foundry division, which makes chips for other firms.

• The corporate’s stock is down 60% this yr, making it the second-worst performing component of the S&P 500 index.

• The corporate reported a second-quarter lack of $1.6 billion, and analysts expect a $1 billion loss this quarter.

A report that Intel Corp. (INTC) is considering the spin-off or sale of its foundry business lifted the tech giant’s stock Friday.

Shares of Intel rose nearly 8% following the Bloomberg report, which cited people aware of the matter. An Intel spokesperson declined to comment.

Intel’s foundry business makes chips for outdoor firms. A move isn’t likely within the immediate term, nevertheless, with multiple options expected to be presented at a September board meeting, the report said.

Recent Struggles

Intel stock is down 60% in 2024, making it the second-worst performing stock among the many S&P 500 index.

On August 1, the corporate said it could lay off 15% of its workforce alongside disappointing quarterly results, which sent shares to their lowest level since 2013. Intel posted a second-quarter net lack of $1.6 billion, and analysts expect one other $1 billion in losses this quarter, in accordance with the Visible Alpha consensus.

Reports last week said that Intel’s progress on constructing two recent chip fabrication facilities in Germany could also be stalled.

Intel’s sliding shares have pushed its market value below numerous other chip giants. That’s a far cry from 2021, when CEO Pat Gelsinger took the reins and the corporate dwarfed competitors like Nvidia.

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