Why Intel Stock Dropped Again Today

Sales for Intel (NASDAQ:INTC) Stocks continued to trade higher on Wednesday. The semiconductor company’s stock price ended the day down 2.7%, according to data from S&P Global Markets Insights.

After the market closed yesterday, Intel released its latest 13F filing – a form submitted to the Securities and Exchange Commission (SECOND) showing the stock positions of institutional investors and asset managers. The document revealed that Intel had sold its stake in the British chip designer Firearmsand investors do not seem happy with this decision.

Intel dumps Arm shares

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

Intel is in the midst of massive cost-cutting and restructuring initiatives, and the decision to divest its holdings could be another sign of the financial difficulties the company is facing. Given that the American chipmaker currently has a market capitalization of around $85 billion, the stock sale is probably not a big deal in the grand scheme of things – but it does eliminate a potential positive catalyst for the struggling company. While Intel’s stock price has fallen by around 60% in the 2024 trading period, Arm’s stock price has increased by 67.5% in that period.

There was some good news for Intel today

Intel investors have been hungry for positive news lately. While the stock lost some ground in today’s trading, there was one positive development for the company.

Karma Automotive issued a press release today announcing a partnership with Intel to develop a software-defined vehicle architecture (SVDA) for future cars. The first of these vehicles will be the Karma Kaveya coupe, which is scheduled to launch in 2026 and will retail for approximately $300,000 at launch. The SVDA platform is designed to facilitate improved driving performance and pave the way for other enhanced features.

While the Karma partnership isn’t expected to become a major performance driver for Intel anytime soon, it could mark the beginning of a bigger push for the chipmaker’s automotive division. The semiconductor company could have more news on its automotive division, artificial intelligence plans and manufacturing business when it reports at Deutsche Bank’s 2024 Technology Conference on Aug. 29.

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