Intel working with bankers to present board with strategic options

Intel Company executives are working with advisers to map out options for dealing with the struggling business, according to a person familiar with the matter.

These advisors include: Morgan Stanley Intel’s advisers and other bankers are likely to present options to directors at a board meeting scheduled for September, said the people, who asked not to be identified discussing confidential matters. The advisers are considering a range of options, including a spin-off or sale of the business, the people said.

Bloomberg News Intel was the first to report that the company was in talks with advisers to explore strategic options. Representatives for Intel and a Morgan Stanley spokesperson did not immediately respond to CNBC’s request for comment.

Chief Executive Officer Pat Gelsinger publicly acknowledged Thursday that the company understands investor skepticism and is working to address it.

“We know we need to operate efficiently, with agility and urgency,” Gelsinger said at a Deutsche Bank technology conference. CNBC previously reported that several advisers, including Morgan Stanley, were helping the company with its activism defense.

Mr. Gelsinger said in his speech that Intel remains committed to plans to launch the next generation of its Luna Lake laptop processor, but investors see no signs of a turnaround, with the company’s shares down nearly 60% this year.

This once-dominant company is primarily NVIDIAmakes the graphic processing units (GPUs) that are at the heart of today’s leading AI models.

Alongside a dismal earnings report earlier this month, Intel said it would lay off 15,000 employees. The cuts, part of a broader effort focused on cutting costs, did little to ease investor disappointment. Gelsinger said Thursday that around a dozen customers have expressed interest in the company’s foundry business, but the expansion will still be costly for Intel.

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