Intel’s top executives are currently teaming up with several advisors to develop solutions aimed at addressing the company’s declining business operations, as reported by a source familiar with the situation.

Among these advisors are Morgan Stanley and other financial experts who are expected to lay out various possibilities for Intel’s board members during an upcoming meeting in September. These options may involve divesting and offloading certain divisions within the company, as per the undisclosed source.

An initial report by Bloomberg News unveiled Intel’s efforts to explore strategic alternatives with its advisors. Both Intel and a representative from Morgan Stanley have yet to provide a response to requests for comments on the matter.

During a public appearance, CEO Pat Gelsinger publicly acknowledged the prevailing skepticism among investors and assured that steps were being taken to confront these concerns.

“We understand the need to operate with efficiency, agility, and a sense of urgency,” Gelsinger articulated during the Deutsche Bank’s Technology Conference. Previous reports indicated that advisors such as Morgan Stanley were actively aiding the company in preempting potential activist interventions.

While Gelsinger affirmed Intel’s intentions to launch their latest laptop central processing unit, Lunar Lake, investors remain unconvinced of a forthcoming turnaround, leading the stock to plummet by nearly 60% this year.

Once a dominant force, Intel has found itself outpaced by Nvidia, a key producer of graphics processing units (GPUs) essential to today’s leading AI technologies.

Following a dismal financial report earlier this month, Intel announced significant layoffs totaling 15,000 employees. These workforce reductions form part of a broader strategy to cut down on expenses, yet failed to reassure concerned investors. Gelsinger highlighted that approximately twelve potential clients have expressed interest in Intel’s foundry business, although the associated costs continue to burden the company.

VIEW: Advantages for AI infrastructure