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Intel soars 8% after activist hedge fund Third Point urges chipmaker to explore strategic alternatives


#Third #Point, run by billionaire investor #Daniel #Loeb, has amassed a near $1 billion stake in #Intel, #Reuters said, citing people familiar with the matter.

  • #Intel soared 8% on #Tuesday after activist hedge fund #Third #Point sent a letter to the chipmaker urging it to explore strategic alternatives, according to #Reuters.
  • #Third #Point, run by #Daniel #Loeb, has amassed a nearly $1 billion stake in #Intel, #Reuters said, citing people familiar with the matter.
  • “#Without immediate change at #Intel, we fear that #America’s access to leading-edge semiconductor supply will erode, forcing the US to rely more heavily on a geopolitically unstable #East #Asia to power everything from PCs to data centers to critical infrastructure,” the letter said.
  • #Watch #Intel trade live here.

#Intel surged as much as 8% on #Tuesday after activist hedge fund #Third #Point sent a letter to the chipmaker urging it to explore strategic alternatives, according to #Reuters.

#Third #Point, run by billionaire investor #Daniel #Loeb, has amassed a nearly $1 billion stake in #Intel, #Reuters reported, citing people familiar with the matter.

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#According to the letter, which was reviewed by #Reuters, #Third #Point is calling for immediate action from #Intel #Chairman #Omar #Ishrak to boost the company’s position as a major provider of processor chips for PCs and data centers.

“#Without immediate change at #Intel, we fear that #America’s access to leading-edge semiconductor supply will erode, forcing the US to rely more heavily on a geopolitically unstable #East #Asia to power everything from PCs to data centers to critical infrastructure and more,” the letter said.

#Read more: #Peloton has climbed 415% this year. #We asked 3 analysts – including one who expects a 78% stock decline – for their 2021 outlooks with the prospect of gym restrictions easing.

#Third #Point believes a possible course of action for #Intel would include the company separating its chip design from its semiconductor manufacturing operations, and could include a joint venture in manufacturing, #Reuters reported.

#In recent years, #Intel has been losing market share to #Advanced #Micro #Devices, and has lost key customers like #Apple as companies develop their own chips in house and outsource the manufacturing to #East #Asia.

#According to #Loeb, #Intel has lost its pole position in microprocessor manufacturing to #Taiwan #Semiconductor #Manufacturing #Co and #Samsung #Electronics.

#Another avenue for a turnaround in #Intel includes the company addressing its “human capital management issue,” given that many of its chip designers have fled in recent years, “demoralized by the status quo,” the letter said, according to #Reuters.

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#In a statement, #Intel responded to #Third #Point’s letter and said, “#Intel #Corporation welcomes input from all investors regarding enhanced shareholder value. #In that spirit, we look forward to engaging with #Third #Point LLC on their ideas towards that goal.”

#Markets #Insider



[ source link ]
https://www.businessinsider.fr/us/intel-stock-price-third-point-urges-chipmaker-explore-strategic-alternatives-2020-12

##Intel #soars #activist #hedge #fund ##Point #urges #chipmaker #explore #strategic #alternatives

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