Summary

  • Intel lost $39 billion due to stock crash in 2024, leading to rumors of splitting up assets.
  • Consideration of splitting company into chip design and production groups to ensure survival.
  • Intel exploring cost-saving strategies like project cuts before resorting to drastic measures.

2024 has been a nasty year for Intel. After lots of layoffs and a disastrous Raptor Lake release which saw chips slowly degrade by themselves, the company lost $39 billion over 24 hours in a stock crash. Unfortunately, the stock hasn't recovered, which has likely spurred conversation within Intel as to how it can proceed. Rumors are abound that the company is considering splitting up its assets to better weather the storm.

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Intel 15th-gen Arrow Lake

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Intel is considering a company-wide fracture to survive

As reported by Bloomberg, Intel is in incredibly rough waters right now. Insiders in the company have reportedly claimed that Intel is considering splitting up into two groups. The first group will take up the responsibility of designing the chips, while the second will produce them. If that happens, then the latter group can get work from other businesses to produce what they want.

However, there are still some steps Intel can take before slicing its business in two. For instance, the company currently has plans to expand, and cutting off funding for these projects would be a quick and surefire way to save some money. However, Intel can only lop off so many future projects from its funding; if it continues to do poorly, it'll have to resort to more drastic measures to survive. Fortunately, it could make a comeback with the upcoming Arrow Lake, so it's not all doom and gloom.

So, what happens right now? The company hasn't enacted anything yet. It's believed that the company will hold a board meeting in September with its bankers, Morgan Stanley and Goldman Sachs Group Inc. During the meeting, they'll discuss what can be done to save Intel, and we'll begin to see change within Intel once the meeting concludes. Until then, we can only watch as Intel falls from its status as a technology powerhouse.