Intel (NASDAQ:INTC) sold its entire stake in British chipmaker Arm Holdings (NASDAQ:ARM) during the second quarter of this year, according to a recent regulatory filing.
The tech giant offloaded 1.18 million shares in Arm, potentially raising approximately $146.7 million based on the average stock price between April and June.
The sale comes at a time when Intel is navigating significant challenges within the semiconductor industry.
The company, once a dominant force in traditional data center chips, is now struggling to maintain its relevance in the face of competition, particularly in the rapidly growing AI chip market.
To address these challenges, Intel has announced substantial cost-cutting measures, including the reduction of more than 15% of its workforce and the suspension of its dividend earlier this month.
Intel has also been focused on developing advanced AI chips and expanding its foundry business under CEO Pat Gelsinger's leadership.
However, this shift in strategy has increased costs and put pressure on profit margins, prompting the company to seek ways to bolster its liquidity and efficiency.
The decision to liquidate its stake in Arm aligns with Intel's broader restructuring plan, which emphasizes a renewed focus on liquidity and operational efficiency.
As of the end of June, Intel reported cash and cash equivalents of $11.29 billion, alongside total current liabilities of approximately $32 billion.
Intel's stock has faced significant pressure this year, losing over 59% of its value. At the time of writing on Wednesday, it is down a further 1.7% on the day, trading not far above the $20 a share level.
The sale of its Arm shares marks another step in the company's ongoing efforts to navigate its financial and operational challenges.