Intel is liquidating its stake in ARM, the By Investing.com document shows

Intel (NASDAQ: ) has sold its entire stake in the British chip maker Arm Holdings (NASDAQ: ) during the second quarter of this year, according to a recent regulatory filing.

The tech giant offloaded 1.18 million shares in Arm, potentially raising about $146.7 million based on the average share price between April and June.

The sale comes at a time when Intel is facing significant challenges in the semiconductor industry.

The company, once a dominant force in traditional data center chips, is now struggling to stay relevant in the face of competition, particularly in the fast-growing AI chip market.

To address these challenges, Intel announced substantial cost-cutting measures, including cutting more than 15% of its workforce and suspending its dividend earlier this month.

Intel also focused on developing advanced AI chips and expanding its foundry business under CEO Pat Gelsinger.

However, this change in strategy has increased costs and put pressure on profit margins, prompting the company to look for ways to strengthen its liquidity and efficiency.

The decision to liquidate its stake in Arm aligns with Intel’s broader restructuring plan, which emphasizes a renewed focus on liquidity and operational efficiency.

At the end of June, Intel reported cash and cash equivalents of $11.29 billion, along with total current liabilities of about $32 billion.

Intel shares have faced significant pressure this year, losing more than 59% of their value. At the time of writing on Wednesday, it was down another 1.7% on the day, trading not far above the $20 per share level.

The sale of its Arm shares marks another step in the company’s ongoing efforts to address its financial and operational challenges.