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STORY: Intel could be headed for a big shakeup.

A Reuters source says boss Pat Gelsinger will present a plan later this month to sell off businesses and revamp capital spending.

It’s thought the proposal will be put to a board meeting in mid-September.

There was no comment on the report from the firm.

However, Intel is under pressure to do something as it lags rivals on AI.

Its market value has sunk below $100 billion following a disastrous second-quarter earnings report last month.

Meanwhile, rival Nvidia - seen as the big winner from the AI boom - has seen its value soar to $3 trillion.

The source says Gelsinger’s plan is likely to see capital spending slashed.

That could drive Intel to scrap a $32 billion factory in Germany, a project that had already been delayed.

However, it’s thought he won’t suggest selling off the company’s contract chip manufacturing business.

That has already been separated from its semiconductor design unit, and reports results separately.

Intel has reportedly retained Morgan Stanley and Goldman Sachs to advise on what assets it should get rid of.

Programmable chip unit Altera - which it acquired in 2015 - is seen among likely candidates for disposal.

Intel has already announced plans to cut 15% of its workforce as part of cost-saving measures.