Intel CEO to pitch board on plans to shed assets, cut costs, source says

Core Viewpoint - Intel is planning to present a strategy to its board aimed at cutting unnecessary businesses and revamping capital spending to improve its financial performance, which has significantly declined in recent times [1][4]. Group 1: Business Restructuring - The plan includes selling off businesses, particularly the programmable chip unit Altera, which Intel can no longer afford to support financially [1][7]. - Intel has already separated its foundry business from its design business and has been reporting these segments' financial results separately since Q1 of this year [2][3]. - The mid-September board meeting is crucial for determining which businesses Intel will retain and which will be sold off [5][7]. Group 2: Financial Performance - Intel's market capitalization has dropped below $100 billion, a significant decline compared to Nvidia's $3 trillion valuation [3]. - The company reported a disastrous second-quarter earnings report in August, leading to a pause in dividend payments and a 15% staff reduction aimed at saving $10 billion [5][6]. - Intel expects to cut capital spending to $21.5 billion in 2025, a 17% decrease from the current year [4]. Group 3: Advisory and Strategic Planning - Intel has engaged Morgan Stanley and Goldman Sachs to advise on which businesses to sell and which to retain [4]. - The proposal does not currently include plans to split Intel's contract manufacturing operation but may be discussed in the future [2][8]. - Potential buyers for the Altera unit include infrastructure chipmaker Marvell, indicating interest from other companies in acquiring parts of Intel's business [7][8].