Intel Shares

Intel is making significant moves to focus on its main Central Processing Units (CPUs) and is restructuring various departments as well

Intel’s foundry has secured a deal with Amazon’s AWS cloud computing division, as a customer for making custom artificial intelligence chips. 

The artificial intelligence fabric chip of Intel will utilize the chip maker’s 18A process.

Intel’s Stock Saw a Rise of 8%

After securing Amazon as a multibillion-dollar customer following the CEO, Pat Gelsinger's, announcement, Intel's stock saw a significant increase of about 8% during the extended trading period.

"The board and I agreed that we have a lot of work ahead to drive greater efficiency, improve our profitability and enhance our market competitiveness," Intel’s CEO Pat Gelsinger wrote in the memo. 

Intel’s foundry is important for the company’s recovery: Intel CEO 

The memo also detailed several measures Intel planned to implement to revive itself. As per Pat Gelsinger, Intel’s foundry is important for the company’s recovery.

Gelsinger mentioned that the foundry company would enjoy more autonomy, such as the capacity to attract external investment. Intel intends to create it as a stand-alone entity, governed by a board responsible for managing the foundry activities. The foundry division has already separated its financial results from the design enterprise this past year.

According to Reuters, the board has chosen to divest a portion of its interest in its programmable chip business, Altera. Additionally, it announced a temporary halt to the development of its chip manufacturing facility in Germany for two years

The company is also making significant moves to focus on the fundamental technology of its main Central Processing Units (CPUs) and is restructuring various departments as well.