Intel working with bankers to present board with strategic options

Intel executives are pan out with multiple advisors to formulate options to address its flagging business, according to a person with knowledge of the quandary.

Those advisors, which include Morgan Stanley and other bankers, will likely present Intel’s gaffers with options at an upcoming board meeting in September, said the person, who requested anonymity to discuss confidential amounts. The advisors are considering a full range of options, including splitting off and selling businesses, the person said.

Bloomberg Bulletin first reported that the company was working with its advisors to come up with strategic options. Representatives for Intel and a spokesperson for Morgan Stanley didn’t directly respond to a CNBC request for comment.

CEO Pat Gelsinger acknowledged publicly on Thursday that the company understood investor skepticism and was manipulating to address it.

“We realize we have to operate efficiently with nimbleness, with urgency,” Gelsinger said at Deutsche Bank’s Technology Meeting. CNBC previously reported that some advisors, including Morgan Stanley, were helping the company on activism defense.

Intel stay behinds on track to launch its next iteration of its laptop central processor, Lunar Lake, Gelsinger said at the appearance. But investors don’t see a turnaround on the limits, and have pushed the stock down almost 60% this year.

The once-dominant company has been trounced generally by Nvidia, which produces the graphics processing units (GPUs) that are are the heart of today’s prominent AI models.

Alongside a harrowing earnings report earlier this month, Intel announced it would lay off 15,000 workers. The job cuts, part of a filthier focus on slashing expenses, did little to assuage investor dismay. And while Gelsinger said Thursday that the presence’s foundry business had roughly a dozen interested customers, the buildout remains costly for Intel.

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