Things are not going well for Intel this year. After its latest quarterly report, which disappointed investors and, according to CEO Patrick Gelsinger, was “below the standards set for the company previously”, share price collapsed immediately by 10%, and since the beginning of the year their price has fallen in total by 41%. And while the shares are cheap, the head of the company buys them.
Image Source: Intel
According to a report filed with the Securities and Exchange Commission, Gelsinger purchased 14,800 shares of Intel on Wednesday at an average price of $33.86 per unit for a total of $501,153. This was his third purchase of Intel shares on the open market in 2022. For Gelsinger, it was the largest open market purchase of Intel shares since he took office in February 2021.
Under Gelsinger’s leadership, the company has invested heavily in expanding manufacturing facilities in the US and Europe. However, the decline in demand for PCs had a negative impact on Intel and other chip makers. This is the reason for Intel’s decline. but Gelsinger is sure he is on the right track. Perhaps, by buying shares, among other things, the head of the company is trying to inspire confidence in investors.
Last week, on Tuesday, Intel announced an agreement with Canada’s Brookfield Asset Management to jointly invest up to $30 billion in two state-of-the-art chip manufacturing plants in Arizona. As part of the deal, Intel plans to pay for 51% of the project, receiving a controlling stake.
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