Intel exits Arm Holdings in Q2
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Contributor since / Followers
Contributor since / Followers
3 months ago
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- Intel (NASDAQ:INTC) sold its stake in British chip designer Arm Holdings (NASDAQ:ARM) during Q2, according to a regulatory filing, at a time when the company is struggling with weakening margins and intensifying competition.
- The chipmaker sold nearly 1.2M Arm (ARM) shares, which were valued at a little over $147M at the end of Q1.
- Intel (INTC) declined around 30% since it issued weaker-than-expected guidance, said it would lay off 15% of its workforce and suspended its dividend. The stock has fallen 59.3% YTD.
- Concerns over its near-term profitability prompted analysts to downgrade Intel (INTC), while rating agency Moody’s changed its outlook to negative from stable.
- Moody’s expects significantly weaker profitability for Intel (INTC) over the next 12-18 months due to higher costs, unfavorable product mix, weaker demand, and continued market share losses.