Intel, racked by losses, sells stake in Chip Designer Arm

(Bloomberg) — Intel Corp., which is cutting jobs and costs in an effort to turn around the company, sold its stake in chip technology developer Arm Holdings Plc in the second quarter.

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The company said in a regulatory filing on Tuesday that it no longer owns the 1.18 million shares it owned three months earlier. Based on the average price of Arm’s stock during that period — $124.34 — the sale would have generated about $147 million for Intel.

Intel is struggling to regain its position in a sector it once dominated. Earlier this month, the company posted one of the worst earnings reports in its 56-year history, causing the stock to lose nearly a third of its value. To get back on track, Intel is cutting 15,000 jobs and cutting other expenses. The chipmaker also suspended its dividend.

While the sale of Arm stock may have provided a windfall, the company still reported a net loss of $120 million on its stock investments during that period.

A representative for Santa Clara, California-based Intel declined to comment.

Arm, which sold shares last year in the biggest initial public offering of 2023, is majority owned by Japan’s SoftBank Group Corp. The company licenses chip designs and blueprints to the entire semiconductor industry, including Intel.

Intel produces the majority of its own chips based on its own designs. But those products have lost ground to rivals, many of which use Arm’s products.

(Updates with company declining to comment on fifth paragraph.)

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