Intel is facing a critical crossroads as its leadership scrambles to address the company’s declining performance. According to sources familiar with the situation, Intel executives are working closely with advisors, including Morgan Stanley, to explore a range of strategic options that could reshape the tech giant’s future. These options, which may include selling off parts of the business, are expected to be discussed at an upcoming board meeting in September.
This potential shake-up comes as Intel's shares struggle, despite a brief 10% uptick on Friday. The company has been grappling with significant challenges, particularly as it falls behind competitors like Nvidia, whose GPUs have become essential in the booming AI industry. CEO Pat Gelsinger has acknowledged the concerns of investors, admitting that the company must operate with greater efficiency and agility.
At the recent Deutsche Bank Technology Conference, Gelsinger reiterated Intel’s commitment to innovation, highlighting the upcoming launch of the Lunar Lake laptop processor. However, with Intel’s stock plummeting nearly 60% this year and a disappointing earnings report that led to 15,000 layoffs, the company’s path to recovery remains uncertain.
As Intel navigates this turbulent period, the decisions made in the coming weeks could determine its place in an increasingly competitive tech landscape. With investors losing confidence and rivals gaining ground, Intel's future hinges on its ability to adapt and overcome the challenges ahead.
