Intel is spinning off Foundry services to improve finances and potentially increase stock price

From Nasdaq: 2024-09-24 08:15:00

Semiconductor manufacturer Intel Co. (NASDAQ: INTC) has faced a 56.5% YTD drop, disappointing investors against AI competitors NVIDIA (NASDAQ: NVDA) and AMD (NASDAQ: AMD). Intel’s $10B cost cuts and layoffs failed to boost stock prices.

Intel announced a multi-billion-dollar deal with Amazon Web Services (AWS) to produce AI chips. Amazon’s $7.8B investment in Ohio data centers hints at further collaborations. Microsoft’s interest in Intel’s AI chips is rumored.

Intel plans to spin off its Foundry services into an independent company for financial improvement. Market demand led to halting factory construction in Germany and Poland. A potential increase in stock due to the spin-off is anticipated.

Intel recently spun off Altera, its FPGA solutions business. Altera aims to expand into 6G wireless, Ethernet, and CXL. Intel is eyeing a potential IPO for Altera in the near future.

Despite Intel’s 71% stake drop in Mobile Eye (NASDAQ: MBLY), the company confirmed it has no interest in selling its shares. Qualcomm (NASDAQ: QCOM) has reportedly approached Intel for a possible acquisition.

INTC stock shows signs of a rectangle channel breakout pattern. Fib retracement support levels signal potential buy opportunities. Bullish investors can consider options strategies to limit risks and capitalize on Intel’s potential upside.



Read more at Nasdaq: Intel’s Spin-Off Strategy: A Bargain Hiding in Plain Sight?