Intel CEO Pat Gelsinger, along with other key executives, are gearing up to present a strategic plan to the company’s board of directors later this month. The goal is to restructure the business and trim unnecessary expenses as they work towards revitalizing the company’s performance. In a bid to reignite the company’s fortunes, the plan is set to include selling off businesses, such as the programmable chip unit Altera, that are no longer sustainable with Intel’s current financial standing.
This exclusive report sheds light on the upcoming proposal that has yet to be disclosed elsewhere. The presentation by Gelsinger and his team is scheduled for a mid-September board meeting, where crucial decisions will be made regarding the future direction of Intel. While the plan does not currently involve splitting off Intel’s contract manufacturing division, the company is considering various options to optimize its operations and reduce capital spending.
Intel has already taken steps to separate its design and manufacturing businesses to safeguard intellectual property and maintain customer trust. With the company facing fierce competition in the AI sector, particularly against industry giants like Nvidia, Intel is under pressure to adapt and innovate to regain its foothold in the market.
One key aspect of the proposed plan is to scale back capital spending, potentially putting a halt to projects like the $32 billion factory in Germany. This decision comes on the heels of Intel’s revised capital spending forecast for 2025, signaling a strategic shift in the company’s operational strategy.
In addition to internal restructuring, Intel has enlisted the expertise of financial advisors from Morgan Stanley and Goldman Sachs to navigate the process of divesting certain business units. While specific details of the plan are yet to be finalized, Intel is actively exploring options to streamline its operations and drive growth in the rapidly evolving tech landscape.
The upcoming board meeting is expected to be a turning point for Intel as it charts a course for its future trajectory. With potential divestitures on the horizon, including the Altera programmable chip business, Intel is exploring opportunities to optimize its portfolio and strengthen its position in the market. Stay tuned for further updates as Intel continues to transform and adapt to meet the demands of the digital age.
This exclusive report from Extreme Investor Network provides readers with unparalleled insights into Intel’s strategic overhaul and the key decisions that will shape the company’s future. Stay informed and stay ahead of the curve with the latest developments in the world of finance and technology.