This week, I want to give a brief update on Intel.
Activist Campaign
Intel hired Morgan Stanley to help them prepare a defense against activist investors. With the share price dropping ~60% YTD and the market cap being $87 billion, Intel is concerned that activist investors will pounce on the company and pressure them to take actions that benefit the stock price in the short-term but not in the long-term.
I’m not sure what an activist investor will suggest since the company is already cutting costs and slowly monetizing assets like Mobileye and soon Altera. They’re also using TSMC to make some of their chips, and they’re partnering with private equity firms to build their fabs.
An activist investor has not been announced to the public yet, so Intel seems to be taking preemptive steps by hiring Morgan Stanley.
Intel is on the lookout for activist investors, and I’m on the lookout for short sellers. Let’s see which one shows up first.
Board Member Resigns
Intel Board Member, Lip-Bu Tan, decided to leave Intel’s board effective immediately. He said it’s “based on a need to reprioritize various commitments.”
I don’t know the full story, but Lip-Bu Tan seems like a busy guy. Excluding Intel, he’s on two public company boards, a few private boards, and he runs multiple venture capital firms. This is a lot for someone who’s 65 years old. I understand he doesn’t want to complicate his life by taking on the herculean task of turning Intel around at this stage of his life.
German Fabs
There are rumors swirling around that Intel might delay or scrap their plans to build leading-edge fabs in Germany. We have to wait for more information to see if this is true.
The fun never stops with Intel.
Stay strong, stay blessed, and God willing, I will see you next week.
We can make our plans, but the Lord determines our steps.
Proverbs 16:9 NLT
コメント