Intel to sell 1.18 million Arm shares during the second quarter of 2024, raising an average of $200 million

Intel, which is cutting jobs and expenses in an effort to turn around its business, has reportedly sold about 1.18 million shares of semiconductor technology maker Arm Holdings during the second quarter of 2024 (April to June).

13F-HR - 08/13/2024 - Intel Corporation - 0000050863-24-000132.pdf
https://www.intc.com/filings-reports/all-sec-filings/content/0000050863-24-000132/0000050863-24-000132.pdf

Intel, Pinched by Losses, Sells Stake in Chip Designer Arm - Bloomberg
https://www.bloomberg.com/news/articles/2024-08-13/intel-pinched-by-losses-sells-stake-in-chip-designer-arm

Intel filed regulatory documents on August 13, 2024, reporting that it no longer holds 1.18 million Arm Holdings shares that it held. If the average share price of Arm shares in the second quarter of 2024 is $124.34 (approximately 18,000 yen), Intel would have raised approximately $147 million (approximately 21.7 billion yen). As of the end of June 2024, Intel's cash and cash equivalents were $11.29 billion (approximately 1.67 trillion yen) and total current liabilities were approximately $32 billion (approximately 4.72 trillion yen).

Intel announced in its earnings call that its second-quarter 2024 performance fell far short of expectations, announced a major restructuring plan that would cut more than 15% of its workforce, and its stock price plummeted 26% , its worst drop since 1974, to its lowest since 2013.

Intel announces second quarter 2024 financial results, announces deficit of over 240 billion yen and cuts about 15,000 jobs - GIGAZINE

Arm Holdings' stock price has risen 96% since its most recent IPO, so it seems natural for Intel to sell its shares in Arm Holdings. However, if Intel sees Arm Holdings as more than just an investment target, and as a potential future partner in the same semiconductor company, selling the shares could hurt Intel in the long run.

Intel and Arm Holdings declined to comment on the share sale.