(Reuters) – In a move to stay relevant in the chip industry, Intel has sold its 1.18 million share stake in British chip firm Arm Holdings (NASDAQ:) in the second quarter, as revealed in a regulatory filing on Tuesday.
Based on the average price of Arm’s stock between April and June, Intel (NASDAQ:) would have raised approximately $146.7 million from the sale, according to Reuters calculations.
The chipmaker announced earlier this month that it would be reducing its workforce by more than 15% and suspending its dividend due to a decline in spending on traditional data center semiconductors and a shift towards AI chips, where it lags behind competitors like Nvidia (NASDAQ:).
Intel has expressed its focus on developing advanced AI chips and expanding its manufacturing capabilities for hire, aiming to regain the technological edge lost to Taiwan’s TSMC, the largest contract chipmaker globally.
The effort to revitalize the foundry business under CEO Pat Gelsinger has led to increased costs for Intel, putting pressure on profit margins and prompting the need for cost-cutting measures.
Both Intel and ARM declined to comment on the share sale when contacted by Reuters on Tuesday.
“This appears to align with the restructuring plan and the renewed emphasis on liquidity and efficiency outlined by Gelsinger in the last conference call,” said Benchmark Co analyst Cody Acree.
With cash and cash equivalents amounting to $11.29 billion and total current liabilities of around $32 billion as of the end of June, Santa Clara, California-based Intel is navigating its financial position.
Intel’s stock has experienced a significant decline of over 59% this year, plunging 26% on August 2 after the dividend suspension announcement. The stock remained relatively stable in after-hours trading on Tuesday.