Intel Board Member Lip-Bu Tan Resigns Amid Company's Cost-Cutting Efforts

Intel Board Member Lip-Bu Tan Resigns Amid Chipmaker's Struggle With Cost Cuts - Intel (NASDAQ:INTC)

Intel's Q2 revenue misses estimates; company plans $10B cost cuts, but analysts doubt turnaround. On August 19, 2024, Lip-Bu Tan informed the Board of Intel Corp INTC that he was resigning from the Board, effective immediately. Tan attributed the departure as a personal decision based on a need to reprioritize various commitments. Cadence Design Systems, Inc CDNS former chief Tan became Intel's board member in September 2022 and part of Intel's mergers and acquisitions committee, Bloomberg reports. Intel reported a second-quarter topline decline of 0.9% year-on-year to $12.83 billion, trailing the analyst consensus of $12.94 billion. The chip designer disclosed a $10 billion cost-reduction plan, including plans to slash headcount by over 15%. Goldman Sachs analyst Toshiya Hari considered the cost reduction plan insufficient for a turnaround. Intel aims to ship chips for over 100 million artificial intelligence personal computers by 2025, including over 40 million in 2024. Intel stock plunged 39% in the last 12 months and trades at a forward price-to-earnings multiple of 17.39x. Price Action: INTC shares traded higher by 2.91% at $20.69 at the last check on Friday. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Intel director Lip-Bu Tan resigns due to time constraints By Investing.com

SANTA CLARA, CA - Intel Corporation (NASDAQ:INTC) announced the immediate resignation of board member Lip-Bu Tan on Monday. The departure, cited as a personal decision related to time management, was made public in a regulatory filing with the Securities and Exchange Commission on Thursday. Mr. Tan, who has been a part of Intel's board, expressed gratitude for the opportunity to serve and stated the resignation was due to the need to reprioritize his commitments. "I am grateful for the opportunity to serve on the Intel Board of Directors. This is a personal decision based on a need to reprioritize various commitments and I remain supportive of the company and its important work," he said. The semiconductor giant, headquartered at 2200 Mission College Boulevard in Santa Clara, California, did not immediately disclose plans for a successor or how Tan's departure would affect the board's composition. Intel's stock, which is traded on the Nasdaq Global Select Market under the ticker symbol INTC, may see investor reaction to this board-level change. Shareholders and market watchers often scrutinize board movements for insights into corporate governance and strategic direction. In other recent news, Intel Corporation has undergone several significant developments. KeyBanc has revised Intel's future earnings per share (EPS) forecasts downward due to the growing influence of non-controlling interests (NCI) on Intel's earnings. The firm has adjusted its EPS predictions to $0.26 for 2024 and $1.18 for 2025, a decrease from previous estimates. Intel's collaborations, especially those within the Semiconductor Co-Investment Program (SCIP), are expected to shape its earnings trajectory over the next few years. Intel has also issued a warning against an unsolicited mini-tender offer from Tutanota LLC, advising shareholders to exercise caution. The offer is for up to 1 million shares of Intel's common stock at $34 per share. Intel labels the offer as not in the best interests of its stockholders. In other developments, SoftBank (TYO:9984) Group Corp has ended its initiative to co-produce an artificial intelligence chip with Intel due to unmet performance and production expectations. Following this, Intel has shifted its focus towards discussions with Taiwan Semiconductor Manufacturing Co. Intel has also reduced its workforce by more than 15%, equating to approximately 17,500 jobs, as part of a restructuring effort. Lastly, Intel has sold its stake in Arm Holdings (NASDAQ:ARM), netting approximately $146.7 million from the sale of 1.18 million shares. This move comes amidst Intel's challenges in the market, including a reduction in spending on traditional data center semiconductors.

Intel leads semi stocks lower as Tan steps down from board of directors

The beleaguered Intel is also saying goodbye to board of director member Lip-Bu Tan, according to a report by Bloomberg. Tan, former CEO of Cadence Design Systems (CDNS), joined Intel's board in September 2022. Intel's stock has plunged nearly 40% over the past month. On Aug. 1, Intel reported second quarter financial results and a third quarter outlook that all fell below consensus estimates. The Pat Gelsinger-led company also announced plans to slash its workforce by 15% and suspended its dividend. It has since been hounded by numerous rating downgrades and a steadily falling stock price. Nvidia fell 3.66% by the close of market trading on Thursday, marking the end of a rally that saw the stock increase by more than 25% over the past week and a half. The AI giant is slated to release its second quarter fiscal 2025 financial results next Wednesday. Analysts expect it to report earnings per share of $0.64 on revenue of $28.64B. "On past earnings history, particularly in the last twelve to eighteen months, I would expect Nvidia to surprise the market yet again with an earnings beat," said Seeking Alpha analyst Justin Ward. "If this is the case, we could see this stock bypass my original target from last quarter and look for $210 within the next 180 to 220 days."