Intel's shares are experiencing an upswing today.
Intel (INTC 3.25%) shares are on an upward trajectory in Thursday's trading sessions. By 3:15 p.m. ET, the tech giant's stock price had increased by 3.1%. In contrast, both the S&P 500 and the Nasdaq Composite indices were experiencing a 0.5% decline.
Intel's stock price surge can be attributed to a presentation delivered by co-CEOs Michelle Johnston Holthaus and David Zinsner at the Barclays Global Technology Conference. Via this presentation, the executives provided insight into the company's future strategies, which seemed to allay certain investor concerns. It's worth noting that Intel's share price had dropped by about 59% in 2024 prior to this event.
Intel outlines its next moves
Holthaus and Zinsner assumed their co-CEO roles following the departure of former CEO Pat Gelsinger. Investors had been worried about Intel's deteriorating performance in the chip design and semiconductor fabrication sectors. With Gelsinger's resignation, the uncertainty around the company's future only intensified.
In their address at the Barclays conference, Holthaus and Zinsner revealed more about Intel's future plans. One notable point was that the foundry business will transform into a subsidiary, allowing it to operate independently of the chip-design division. The executives also left room for the possibility of spinning off the foundry business entirely, although Zinsner stated that this was a matter for future consideration.
What's on the horizon for Intel?
Intel is currently undergoing significant business restructuring. In addition to exploring ways to separate its foundry business, Holthaus and Zinsner also mentioned the possibility of selling off some of the company's equity in mobile vision expert Mobileye. They are also actively seeking a partner to help with the public listing of Intel's Altera unit, which it acquired for $16.7 billion in 2015.
The presentation at Barclays also highlighted Intel's challenges in the chip design sector, particularly in the face of intense competition from companies like Advanced Micro Devices. Holthaus acknowledged the need for Intel to improve its response to such competition and emphasized the company's goal of achieving stability and regaining market share in the data center by 2025. Furthermore, Intel recognizes the enormous potential that AI presents and is committed to leveraging this opportunity more effectively.
The financial boost from Intel's positive presentation at the Barclays conference has led to increased interest in investing in the tech giant. With the potential separation of its foundry business and exploration of selling off equity in Mobileye, Intel's financial portfolio is set for significant changes.
Holthaus and Zinsner's strategy to improve Intel's performance in the chip design sector and leverage the potential of AI for better market share in data centers is expected to attract more investors, as they seek profitable investment opportunities in the realm of finance and technology.
