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Intel is headquartered in Santa Clara, California.
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Intel
The news came out that the third activist investor, Daniel Loeb, acquired an important stake in the chip manufacturer and pushed it to explore strategic options. This news was bid for in a deal on Tuesday.
Reuters reported that Loeb’s hedge fund owns nearly $1 billion in the $200 billion company, and the company’s stock price rose 5.7% in afternoon trading.
Loeb, he recently fought for
Walt Disney
(DIS) will focus more on its streaming media platform and permanently suspend its dividend distribution. It urges Intel (stock code: INTC) to hire investment advisers to help chip manufacturers determine whether they should continue to become integrated equipment manufacturers. And whether it should spin off some chip manufacturers. Its recent acquisition.
The activist investor added that it is crucial that Intel must retain customers such as Apple (AAPL).
Microsoft
(MSFT), and
Amazon.com
(AMZN) instead of allowing them to send manufactured products overseas.
In recent years, Intel has faced many criticisms because its market leadership has been ceded by competitors such as Intel.
Advanced Micro Devices (AMD),
Nvidia
(NVDA), and
TSMC
(TSM).The P/E ratio of Intel stock is about 10 times the expected P/E ratio, making it similar to a stock whose stock has fallen
General Electric (GE),
Rather than peers, the latter has a P/E ratio of up to 50 times.
In last month’s cover story, Barron Introduced in detail why Intel is not worth its low valuation, and there will be better days in the future.
Intel said in a statement on Tuesday that it “welcomes all investors to provide opinions on enhancing shareholder value” and looks forward to working with Third Point.
Loeb wrote in a letter to Omar Ishrak, the chairman of Intel’s board of directors, that Intel’s decline represents a national security issue.
“Intel cannot be changed immediately. We worry that the United States’ access to leading semiconductor supplies will be eroded, forcing the United States to rely more on geopolitical unstable East Asia to power everything from PCs to data centers to critical infrastructure.” Tao.
Write to Carleton English (carleton): carleton.english@dowjones.com
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