Intel in crisis attempts revival: Goldman Sachs and Morgan Stanley to the rescue

The investment banks are coming to the rescue of Intel, which is grappling with a crisis that is now too long and worrying. This is the latest rumour coming out of the United States, where the semiconductor giant is looking for a way out of the darkest period in its more than 50-year history.

The Santa Clara (California) company reportedly asked Morgan Stanley and Goldman Sachs for help in finding a solution. More precisely, to identify some exit strategies to be proposed already at the next board meeting scheduled for September. According to the Bloomberg news agency, the company led by Pat Gelsinger is discussing various scenarios, including the spin-off of its (semiconductor) product design and manufacturing activities. It is also considering discontinuing the construction of some factories. Morgan Stanley and Goldman Sachs Group, for their part, are apparently also advising on possible merger or acquisition transactions.

Intel's decision to rely on investment banks to relaunch its business - a choice the company did not want to confirm - seems to be dictated by the urgency of reversing a negative trend that has taken the stock to its lowest level since 2013, after a heavy earnings report last month. And after the first rumours about the ongoing talks filtered out, Intel's shares abruptly reversed course, gaining over 7% on Wall Street. It was a glimmer of light that was rekindled, given that - since the beginning of the year - the Santa Clara manufacturer's shares have plummeted by 60%, in the face of a sector, that of chips, which has given average gains of 20%.

The jump in the stock market, despite the fact that no move seems imminent and that discussions with the banks are at an early stage, shows that there is a certain amount of attention around Intel. Gelsinger's company has been at the top of the semiconductor market for years, but seems to have lost its lustre due to certain choices that the market has punished heavily.

Chips for mobile devices (in which Qualcomm has become the big leader in just a few years) and those for artificial intelligence (with Nvidia's breakaway) seem to be two trains that Intel has not been able to intercept in time. And even the long-term operation of building 'foundries' to free the company from third-party dependencies (read Taiwan) has not immediately aroused enthusiasm among investors. Hence the decision to intervene in the company's structure.