Why Intel Stock Plunged Again Today

Sales for Intel (INTC -2.69%) the stock continued on Wednesday. The semiconductor company’s share price ended the day trading up 2.7%, according to data from S&P Global Market Intelligence.

After the market closed yesterday, Intel released its latest 13F filing — a form filed with the Securities and Exchange Commission (SEC) that shows the shareholder positions of institutional investors and asset managers. The document revealed that Intel has sold its stake in the British chip designer Arm holdsand investors don’t seem to be happy with the move.

Intel ditches Arm stock

According to Intel’s 13F filing, the company sold all 1.18 million shares of Arm it owned in the second quarter. Based on calculations for the company’s average share price over the period, Reuters estimated the sale would have generated somewhere in the neighborhood of $146.7 million in cash.

Intel is in the midst of massive cost-cutting and restructuring initiatives, and the move to divest from its equity positions could be another sign of the financial strains the company is facing. Given that the US chip player currently has a market cap of about $85 billion, the share sale probably isn’t a big deal in the grand scheme of things — but it does require a potential positive catalyst for the company in difficulty. mass. While Intel’s stock price fell by about 60% during the 2024 trading period, Arm’s stock price increased by 67.5% throughout the period.

There was some good news for Intel today

Intel investors have been hungry for upbeat news lately. Although the stock still lost ground in today’s trading, there was a positive development for the company.

Karma Automotive today issued a press release announcing that it has entered into a partnership with Intel to develop software-defined vehicle architecture (SVDA) for future cars. The first of these vehicles will be the Karma Kaveya coupe, which will be launched in 2026 and will cost around $300,000 at launch. The SVDA platform is designed to facilitate improved driving performance and open the door for other enhanced features.

While the Karma partnership is unlikely to become a major performance driver for Intel anytime soon, it could be the start of a bigger push for the chip company’s automotive division. The semiconductor specialist may have more news about its automotive unit, AI projects and manufacturing business when it presents at Deutsche Bank’s 2024 Technology Conference on August 29.