Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 6, 2024

Article Excerpt

INTEL CORP., $20.92, Nasdaq symbol INTC, is now a hold. The stock fell 15% this week after the computer chip maker announced that Pat Gelsinger has retired as its chief executive officer and as a director. Chief financial officer David Zinsner and Michelle Johnston Holthaus, general manager of Intel’s client computing group, will serve as interim co-CEOs. Under Gelsinger, Intel began a multi-year plan in 2021 to improve its technical expertise and expand its ability to make chips for other companies. The plan mainly involves building new chipmaking plants in the U.S. and Europe. In all, Intel will spend roughly $138 billion on these projects. That’s 54% more than its $89.7 billion market cap. However, the new strategy has failed to attract customers. As a result, the stock has dropped 50% in the past year. It’s likely Intel will continue building its new plants in Arizona and Ohio. That’s mainly because Intel will receive $7.86 billion from the U.S. federal government under its plan to…