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A sign is seen in front of Intel’s headquarters in Santa Clara, California, August 1, 2024.
Justin Sullivan | Getty Images News | Getty Images
Intel Working with consultants, including Morgan Stanley The move will help the company fend off attacks from activist investors as Chief Executive Officer Pat Gelsinger tries to turn around the struggling chipmaker, according to people familiar with the matter.
While Intel has faced pressure from activist investors in the past, it has not formally launched its new campaign and it is unclear whether activist investors have contacted the company’s board. Morgan Stanley has previously worked with Intel, including on the company’s 2022 spinoff. Moving Eye.
The sources familiar with Morgan Stanley’s latest moves requested anonymity because of confidentiality reasons. Representatives for Intel and Morgan Stanley declined to comment.
Intel lost its title as the largest chipmaker in the United States last year due to Nvidia The booming artificial intelligence business has pushed it to the top. Nvidia’s market value has long surpassed Intel and is currently worth Over 3 trillion USDwhich is about 35 times the size of its smaller competitor. Intel also fell behind Advanced Micro Devices, Broadcom, Qualcomm and Texas Instruments Calculated by market value.
Earlier this month, Intel Announce The company will cut about 15%, or 15,000 jobs, from its workforce as part of a $10 billion cost-cutting plan as it reported quarterly results that missed Wall Street expectations and said it would not pay a dividend in the fourth quarter.
Intel’s biggest challenge lately is that it has largely fallen behind in the AI wars, as big cloud vendors and developers of large language models turn to Nvidia’s GPUs to handle the heaviest workloads. Intel missed out on much of the smartphone boom before the AI boom.
In 2020, before Kissinger became CEO, Dan Loeb’s Third Point acquired a large stake in Intel and pushed the company to explore strategic alternatives to address Market share declineIntel’s board is led by Frank Yeary, a prominent investment banker who served as executive chairman of the company before it acquired Camberview in 2018.
The board experienced some turmoil this week, with semiconductor industry veteran Lip-Bu Tan announcing on Thursday that he was stepping down after just two years as a director.
“This is a personal decision based on the need to reprioritize my commitments, and I remain supportive of the company and its important work,” Chan said in a statement. Record keeping.
— CNBC’s Alex Sherman and Kif Leswing contributed to this report.
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