- Intel stock has been lifted as much as 9% on Friday following a Bloomberg article.
- Semiconductor firm is in talks with Wall Street banks to devise new strategy.
- Company could once again spin off its foundry business after recent resurrection.
- INTC stock is now trading at highest level since its earnings collapse on August 2.
Intel (INTC), the troubled legacy semiconductor giant, jumped 9% on Friday after the company leaked internal discussions over spinning off its foundry business and refocusing on chip design.
INTC shares moved as high as $22.12, the highest the stock has traded since it came crashing down on August 2 following an earnings release in which Intel lost $1.6 billion.
As the smallest member of the Dow Jones Industrial Average (DJIA), Intel’s rally was unable to sway the index, which sold off 0.2% despite slight gains from the S&P 500 and NASDAQ.
Intel stock news
Bloomberg published a story on Friday that looks to be a planned leak from the C suite. The story says that the half-century-old semiconductor is working with bankers at Goldman Sachs and Morgan Stanley to devise a new strategy.
The discussions appear to be in their early stages, but the idea of once again separating the foundry and design businesses is back on the table. That would be a 180 for CEO Pat Gelsinger, whose primary plan since returning to Intel in 2021 was to compete with Taiwan Semiconductor (TSM) on the production segment of the semi business.
Thus far, however, Intel remains the biggest customer of its third-party foundry business. With losses exploding, some bankers think it’s time to at least cut back on some of the colossal capex projects.
Board Director Lip-Bu Tan, who has the most experience with chip production, left Intel’s board last week. However, rumors have emerged that Tan may be leaving the board to advise an outside spin-off committee. TF International Securities analyst Ming-Chi Kuo reported the following on X:
Tweet appeared on X platform on August 30, 2024
If that is, indeed, the case, then the discussions must be further along than first estimated by the Bloomberg article.
Intel cut 15,000 jobs in light of the recent quarter’s results and also suspended its dividend, which it had paid every quarter since 2013. It began paying the current dividend after suspending it in 2003.
Gelsinger did not hold back at an industry conference this week: “We've been working hard to address the issues, and at earnings we were determined to lay out a clear view of where we were, but also some of the next steps we needed to address. And obviously, the market didn't respond positively."
Intel stock chart
Intel stock has spent the past month trading at 2013 levels. This is below the prior pullback from October 2022 through February 2023 when shares dipped to support at $24.90.
The intraday high at $22.12 is a good sign for bulls since it is above the August 2 high of $21.98. This new high could mean that $24.90 is back on the table. Of course, the real target is the $28.89 low from August 1 since traders love to fill gaps, but that level could be a ways off. Gelsinger has much to do.
INTC daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![EUR/USD stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.