Intel Sells Shares in ARM| The blue giant continues to fall
In one of its faltering moves to regain its financial standing, Intel sold all of its shares in ARM, in an attempt to recoup the company's successive losses on all fronts.
Intel currently owns 1.18 million shares in ARM worth $146.7 million, where the company held the rights to manufacture ARM processors in the past. However, given the company's current financial situation, getting rid of its stake in ARM was one of the best solutions to offset part of these losses.
It is worth noting that these harsh measures are not the first that Intel has taken to compensate for its financial losses in all departments. Earlier this month, the company eliminated 15% of its workforce (about 15,000 workers) as one of the cost-cutting solutions that the company hopes will compensate for its significant decline in the CPU market in general.
Benchmark Co analyst Cody Ackery told Reuters: "This seems to be in line with the restructuring plan and the renewed focus on liquidity and efficiency that Gilsinger put in place at the last conference."
The sharp decline in the market value of the company's shares, which has fallen by up to 59% of its market value so far this year, and fell by 26% on August 2 after the company stopped its dividend, is due to a combination of different factors. Things like AMD's dominance of the CPU market, NVIDIA on the AI market, the losses caused by the thirteenth and fourteenth generation processor problem we talked about, and more.
However, Intel's withdrawal from the ARM market won't have much impact, as Qualcomm uses its own Snapdragon X processors, while MediaTek collaborates with NVIDIA to produce its own AI processors based on the ARM architecture as well.