Intel Corporation (NASDAQ: INTC) has plunged 55.8% year to date against the industry's growth of 97.8%, lagging its peers Advanced Micro Devices, Inc. and NVIDIA Corporation. Much of this underperformance is due to severe financial difficulties and operational challenges, which have forced management to undertake a comprehensive review of its businesses.
Intel is mulling various options, including the potential split of its product design and manufacturing divisions and evaluating which factory projects should be terminated. It also plans to establish Intel Foundry as an independent subsidiary to unlock strategic benefits and improve capital efficiency with clearer separation and independence from the rest of Intel. The division incurred an operating loss of $2.8 billion in the last reported quarter.
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INTC Plagued by Margin Woes
Intel is expanding its artificial intelligence footprint to edge devices and PCs with its Core Ultra processors, supporting more than 100 software vendors and 300 AI models. The new Lunar Lake architecture, featuring advanced graphics and AI processing power, promises significant performance and energy efficiency improvements. Additionally, Intel's updates on next-generation products across all segments of enterprise AI, including the new Intel Xeon 6 processors and Intel Core Ultra client processors, further solidify its position as a frontrunner in the AI revolution.
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