Intel is collaborating with bankers to provide the board with strategic alternatives.

• Intel is collaborating with its financial advisors to explore different solutions for revitalizing its struggling businesses.
• Earlier this year, the company announced it would lay off thousands of employees due to longtime problems and recent missteps.
• Pat Gelsinger, CEO, has revealed plans for a bold transformation at the chip company, which has largely missed out on the AI revolution.

According to a source, executives are collaborating with several advisors to develop strategies to tackle their struggling business.

Intel's directors are likely to receive options from a group of advisors, including bankers, at an upcoming board meeting in September. The advisors are considering various options, including splitting off and selling businesses, said the source.

Intel is reportedly working with its advisors to explore strategic options, but neither Intel nor Morgan Stanley responded to a CNBC request for comment.

On Thursday, CEO Pat Gelsinger publicly acknowledged the investor skepticism and stated that the company was actively working to address it.

Gelsinger stated at Deutsche Bank's Technology Conference that we must operate efficiently with nimbleness and urgency. CNBC previously reported that some advisors, including Morgan Stanley, were assisting the company in defense against activism.

Intel is set to release its latest laptop central processor, Lunar Lake, as per Gelsinger's statement at the event. However, investors are not optimistic about a recovery and have caused the stock to decline by nearly 60% this year.

The company that was previously the leader has been defeated mainly by the one that produces the GPUs that are essential for today's top AI models.

Intel announced it would lay off 15,000 workers, despite a disastrous earnings report earlier this month. The job cuts, aimed at reducing expenses, failed to ease investor concerns. Gelsinger revealed on Thursday that the company's foundry business had a dozen interested customers, but the buildout remains expensive for Intel.

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