In a bid to streamline operations and cut costs, Intel's CEO, Pat Gelsinger, is scheduled to present a strategic overhaul plan to the company's board of directors later this month, according to a report by Reuters. The plan aims to divest non-core businesses, including its programmable chip division, Altera. The proposal is expected to be discussed during a board meeting scheduled for mid-September.

While the plan does not include proposals to separate and sell off Intel's foundry operations, Gelsinger's proposed strategy seeks to address the company's challenges as it struggles to compete with industry leader Nvidia in the AI chip market. Intel's market capitalization has experienced a significant decline, falling below $100 billion following a disappointing second-quarter earnings report in August.

Gelsinger recently spoke at a Deutsche Bank conference, acknowledging the company's issues and assuring investors that Intel is actively working towards addressing them. He highlighted that Intel is entering the second phase of its turnaround strategy and emphasized that key decisions regarding the company's future direction are expected to be made during the upcoming board meeting.

To better serve external customers of Intel's fabrication facilities and avoid conflicts of interest, the company's manufacturing and design divisions have already been separated in financial reporting since the beginning of the year.

With the presentation of the strategic overhaul plan, Gelsinger aims to reshape Intel's operations and cut costs by divesting non-core businesses. The proposal involving the divestment of Altera could mark a significant shift for the company as it seeks to focus on its core areas of expertise. However, the plans surrounding Intel's foundry operations remain unchanged for now.

Investors and industry experts will be closely watching the outcome of the board meeting, as the decisions made will have a significant impact on the future trajectory of Intel. As the company faces stiff competition in the AI chip market, Gelsinger's leadership and the implementation of an effective strategy will be crucial in reviving Intel's fortunes and regaining its market dominance.