Intel Prepares Defense Against Activist Investors

Intel is enlisting advisors, including Morgan Stanley, to strategize against potential activist investors amid a steep decline in stock value—down nearly 60% this year due to disappointing financial results and a weak outlook. The company reported a significant loss in its Data Center and AI segment, leading to drastic measures such as laying off 15% of its workforce and suspending its dividend. Although no formal activist campaigns have been initiated, Intel's leadership is concerned about its vulnerability, especially as competitors like AMD and NVIDIA continue to gain market share. There is speculation that activist investors might push for restructuring, including a possible spinoff of Intel's manufacturing division, which has been struggling financially. Intel's challenges are compounded by its historical failure to capitalize on emerging trends, particularly in the AI sector, where it has fallen behind. As the company grapples with these issues, its leadership is under pressure to enhance strategic focus and operational efficiency.