Loeb’s fund, Third Point LLC, has “built a significant stake" in Intel and plans to push for changes, including potentially nominating board directors, he wrote to Intel Chairman Omar Ishrak. The investor also said the computer chip giant has dramatically underperformed in the past five years, including losing more than $60 billion in market value this year alone. Third Point's letter indicated Intel has lost its pole position in microprocessor manufacturing to Taiwan Semiconductor Manufacturing Co and South Korea's Samsung Electronics Co Ltd, and others. Following this, Intel shares rose 6.1% to $49.95, the most in more than eight months on the news, giving the company a market value of more than $200 billion. That strategy is being questioned now as the company’s manufacturing capabilities fall behind the new industry leader Taiwan Semiconductor Manufacturing Co.

Source: Mint December 30, 2020 04:07 UTC