Struggling chipmaker Intel said on Thursday it had no plans to divest a majority interest in Mobileye , sparking an 8% rise in the self-driving tech firm's shares in premarket trading.
Shareholders are skeptical of Intel's plans to gain market share in the semiconductor industry.
Intel stock remains a hold despite being at multi-year lows due to poor earnings, weak guidance, and management struggles. Intel's long-term performance is dismal, with the stock down 42% over the last decade, indicating chronic underperformance. A new CEO, preferably an outsider, could potentially drive significant corporate culture reform and improve Intel's competitive position.
Intel won a $3 billion contract from the government to manufacture chips in the U.S. Intel also expanded its relationship with Amazon. While those are positive signs, Intel needs to overhaul its culture to be successful.
Intel and Micron are two of the worst-performing semiconductor stocks in the previous two months.
Intel stock (NASDAQ: INTC) rallied by close to 6% in Monday's trading and gained by another 8% in after-hours trading, taking the stock to levels of about $22 per share. Intel stock still remains down by over 50% year-to-date.
As markets rise in anticipation of the Fed cutting rates tomorrow, Intel (INTC) and Amazon (AMZN) have helped lead the broader rally among tech stocks after announcing plans to expand their partnership.
Jordan Klein, tech, mean and telecom analyst at Mizuho Americas, joins Caroline Hyde and Ed Ludlow to discuss why he thinks the news of Intel's Amazon deal is very positive for the chip company. He speaks on "Bloomberg Technology.
There are signs of hope among Intel (INTC) investors.
Intel will make custom artificial intelligence chips for Amazon Web Services. The companies said this is a multiyear, multibillion-dollar deal.
Intel (INTC) shares climb into Tuesday's session after announcing plans to expand its AI chipmaking partnership with Amazon Web Services (AMZN). Furthermore, Intel announced plans to spin off its Intel Foundry business into an independent subsidiary.
Mandeep Singh, Bloomberg Intelligence Senior Tech Industry Analyst, joins to discuss the latest on Intel's custom chip and delayed German factory plans and the latest with Microsoft's $60 billion buyback.