This story comes from the Portland Business Journal, a KGW news partner. For the full story, click here.
Reports on troubled Intel's next move continued to percolate over the holiday weekend, and investors on Tuesday appeared to sober up at the company's prospects.
As the Nasdaq fell 3.3%, Intel shares (Nasdaq: INTC) dropped 8.8%.
That gave back almost all the nearly 10% gain that shares made on Friday after Bloomberg, citing anonymous insiders, reported that Intel was exploring selling its chip manufacturing business, with other less dramatic options also under discussion.
Reuters on Sunday put a different spin on things: It said a proposal that CEO Pat Gelsinger and team were putting together for a mid-month board meeting "does not yet" include selling Intel Foundry.
The options in play, Reuters said, citing unnamed sources, include selling the company's Altera programmable chip unit and pausing or halting a $32 billion factory project in Germany.
Intel began operating Altera as a standalone business this year with the intention of taking it public in the next two to three years.
Tuesday also brought speculation that Intel could be in danger of losing its spot in the Dow Jones Industrial Average. Intel shares are down 59.5% since the end of 2023, making it the Dow's worst performer and with a dwindling influence in the index, which is based on stock price. Getting bounced from the 30-company Dow club would be another blow to Intel's prestige.
Intel's product business, meanwhile, is "structurally losing share, in what may be a secularly declining market (x86 CPU), with little or no AI story, that no longer really feels like a franchise."
