Shares of Intel Corporation (NASDAQ:INTC) saw a premarket rise of 2.4%, reaching $20.61, as reports emerged that the chipmaker is working with investment bankers to explore strategic options.
According to reports, Intel is considering various scenarios, including the potential split of its product-design and manufacturing divisions, as well as the possibility of scrapping certain factory projects.
These discussions come at a challenging time for Intel, which is reportedly facing one of the most difficult periods in its five-decade history.
Former executives have indicated that the company’s current struggles could make it vulnerable to a potential activist shareholder attack.
The news follows a turbulent August for Intel, during which the company is expected to lose about a third of its value after announcing a Q2 net loss, job cuts, and the suspension of its dividend.
Year-to-date, Intel's share price has plummeted approximately 60%, significantly underperforming both the Dow Jones Industrial Average, which is up around 9%, and the Philadelphia Semiconductor Index, which has risen by about 20.5%.