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| Intel© AFP=News1 |
Intel’s share price jumped 5% on the New York stock market. Intel closed at $49.39, up 4.93% on the New York Stock Exchange on the 29th (local time).
This is thanks to the activist hedge fund’s third point’s demand to come up with a strategic alternative, claiming that Intel has been pushed out of semiconductor competition with Samsung Electronics and Taiwanese TSMC.
Third Point, which owns 1 billion dollars worth of Intel shares, sent a letter to the Intel board of directors on the same day. Their market share has increased significantly,” he criticized.
US rival AMD pointed out that “it has eaten up Intel’s share of the core PC and data center CPU markets.” In addition, Third Point saw Intel’s core manpower loss as a problem. As a result, the stock price fell sharply, damaging shareholder profits, and urged them to come up with a strategic alternative.
To do this, ThirdPoint advised that an investment adviser should be hired to decide whether Intel will take all of the semiconductor manufacturing and design and reconsider a previously unsuccessful acquisition. The Financial Times (FT) said it was ordered by Third Point to “reorganize the core strategy by eliminating Intel’s semiconductor manufacturing business altogether.”
Intel’s share price fell 18% this year, and its market capitalization fell by $60 billion. During the same period, Intel’s largest rival AMD’s share price jumped nearly 100%. Compared to the 15% increase in the Standard & Poor’s (S&P) 500 Index, the flagship index of the New York Stock Market, Intel’s stock price fell significantly.