Sale for Intel (NASDAQ:INTC) The semiconductor company’s share price continued to decline on Wednesday. The semiconductor company’s share price ended trading on Wednesday down 2.7 percent, according to data from S&P Global Market Intelligence.
After the market closed yesterday, Intel released its latest 13F document – a form filed with the US Securities and Exchange Commission (SEC) that discloses the stock holdings of institutional investors and asset managers. The document revealed that Intel had sold its stake in the British chipmaker. Arm Holdingsand investors do not seem to be happy with this move.
Intel gives up Arm shares
According to Intel’s 13F filing, the company sold all 1.18 million Arm shares it owned in the second quarter. Based on calculations of the company’s average share price during the period, Reuters estimated the sale would have brought in about $146.7 million in cash.
Intel is in the midst of massive cost-cutting and restructuring efforts, and the move to divest from its holdings could be another sign of the financial strains the company is facing. Given that the U.S. chipmaker currently has a market cap of around $85 billion, the share sale is probably not a big deal in the grand scheme of things – but it does take a potential positive catalyst for the struggling company off the table. While Intel’s share price has fallen around 60% over the course of 2024 trading, Arm’s share price has risen 67.5% over the entire period.
There was good news for Intel today
Intel investors have been hungry for positive news lately, and although the stock still lost ground in today’s trading, there was one positive development for the company.
Karma Automotive today released a press release announcing that it has partnered with Intel to develop a software-defined vehicle architecture (SVDA) for upcoming cars. The first of these vehicles will be the Karma Kaveya Coupe, which is expected to launch in 2026 and will cost approximately $300,000 when it is released. The SVDA platform is expected to enable improved driving performance and open the door to more enhanced features.
While the Karma partnership is unlikely to be a major performance booster for Intel anytime soon, it could be the start of a larger push for the chipmaker’s automotive division. The semiconductor specialist could have more news about its automotive division, its artificial intelligence projects and its manufacturing business when it presents at Deutsche Bank’s 2024 Technology Conference on August 29.
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Keith Noonan does not own any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
Why Intel stock fell again today was originally published by The Motley Fool
