One of the US’s leading chip manufacturers – Intel – announced today new plans for a chip factory in Malaysia. The company has stated the transaction will involve an investment of roughly $7B, with the target of expanding Malaysian product capacity as well as the wider semiconductor market.
The stock stayed quiet this morning as price moves predominantly sideways, displaying a minimal loss of 0.4%.
Investors should wait for the press conference on Wednesday for further details, but it appears the wheels are very much in motion – confirmed by the Malaysian Investment Development Authority, who affirm that Intel has chosen the northern state of Penang for the $7B chip factory.
The factory is supposed to be one of many more, following a statement by Intel CEO Pat Gelsinger in which it was made clear that the company will build more following further fundraising next year.
However, today’s sideways price movement extends a long period of stagnancy, leaving investors curious as to why the large-cap chip company isn’t showing stock growth. Firstly, various market headwinds have proved problematic, yet in the face of a global chip shortage, Intel should be positioned on firm ground. Also, the company’s Mobileye is rumored to go public soon, further bolstering the companies public image and its place in the tech-heavy future.
With dropping Intel stock comes opportunity. As the company continues to build factories, work on Mobileye, and increase its global imprint – the potential for upside movement remains strong. INTC stock is currently trading with a loss of 0.95%, at a price of $50.10.