Intel CEO Pat Gelsinger
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Shares of Intel
have shed a third of their value so far in 2022. And Pat Gelsinger just made his largest openmarket purchase since becoming the chip maker’s chief executive in February 2021.
Intel (ticker: INTC) reported disappointing June-quarter results earlier this summer and cut its full-year forecast. The stock is down 33% in 2022.
Intel was among the key beneficiaries of the Chips and Science Act, which includes more than $50 billion for domestic semiconductor production and research. President Joe Biden signed the bipartisan bill earlier this month. Barron’s noted that the funding won’t be a quick fix for semiconductor manufacturing since it will be spread out over five years.
On Tuesday, the company announced a deal with Brookfield Asset Management to jointly invest up to $30 billion for two chip factories in Arizona. Intel plans to pay 51% of the project.
Gelsinger on Wednesday paid $501,153 for 14,800 Intel shares at an average price of $33.86, according to a filing with the Securities and Exchange Commission. It was the executive’s third open-market purchase of Intel shares in 2022. Intel declined to make Gelsinger available for comment.
Under Gelsinger, the company has been looking to turn itself around. Efforts include investing billions of dollars to boost its manufacturing capabilities in the U.S. and Europe. But weakening PC demand has weighed on chip makers. The iShares Semiconductor exchange-traded fund (SOXX) has fallen 27% in 2022.
Write to Connor Smith at [email protected]
