Intel Corporation INTC is being pushed by activist hedge fund Third Point LLC to explore "strategic alternatives," according to a Reuters report, citing a letter Third Point sent to the tech company’s chairman.
What Happened: Third Point CEO Daniel Loeb wrote to Intel’s chairman Omar Ishrak requesting "immediate action" to boost the company’s position as a provider of processor chips for PCs and data centers.
The changes could lead to a major shakeup at Intel.
“Intel 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,” Intel said in a statement to Reuters.
Why It Matters: Intel customers like Microsoft Corp MSFT are designing in-house processors for server computers running on the company’s cloud services, a development that will reduce reliance on Intel’s chip technology.
The company is under pressure to remain competitive as its clients take business in-house.
INTC Price Action: Intel shares gained 4.93% Tuesday to end the session at $49.39.
The stock has a 52-week high of $69.29 and a 52-week low of $43.63.
Related Link: Chip Stocks Fall On Report Microsoft Will Take Things In House
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
