Intel is reportedly considering a split after a disastrous year

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Key findings

  • Intel lost $39 billion in the 2024 stock crash, leading to rumors of an asset split.
  • Considering splitting the company into chip design and production groups to ensure survival.
  • Intel is considering cost-saving strategies such as project cuts before taking drastic measures.



2024 was a bad year for Intel. After numerous layoffs and the disastrous release of Raptor Lake, where the chips slowly degraded on their own, the company lost $39 billion in 24 hours in a stock market crash. Unfortunately, the stock has not recovered, which has likely led to discussions within Intel on how to move forward. There are many rumors that the company is considering splitting up its assets to better weather the storm.

Intel considers company-wide split to survive

As reported by BloombergIntel is currently in incredibly tricky waters. Insiders at the company have reportedly claimed that Intel is considering splitting into two groups. The first group will take responsibility for designing the chips, while the second will produce them. If that happens, the latter group can get contracts from other companies to produce what it wants.


However, Intel can still make a few moves before it splits its business in half. For example, the company currently has expansion plans, and cutting funding for those projects would be a quick and sure way to save money. However, Intel can only cut so many future projects from its funding, and if things continue to go bad, the company will have to resort to more drastic measures to survive. Fortunately, it could make a comeback with the upcoming Arrow Lake, so it's not all doom and gloom.


So what happens now? The company hasn't put anything into effect yet. It is expected that the company will hold a board meeting in September with its bankers, Morgan Stanley and Goldman Sachs Group Inc. During the meeting, there will be discussions about what can be done to save Intel, and once the meeting is complete, we will start to see changes within Intel. Until then, we can only watch as Intel loses its status as a technology major.


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