Intel Shares Rise as Company Begins Building Ohio Manufacturing Plant
July 7, 2022
On Wednesday, shares of Intel Corporation ($NASDAQ:INTC) rose after the company officially acquired the land it needs to start building a new manufacturing plant in Ohio. According to the Columbus Dispatch, Intel paid $111 million for 750 acres in New Albany, a suburb just outside of Columbus. This new factory is part of Intel’s larger $20 billion investment to expand its manufacturing capabilities in the United States. Last week, an Intel spokesman confirmed to NBC that construction crews had started work on the site, getting it ready and excavating. “A diverse Ohio-based team led by Gilbane Building Company has begun early work to prepare the site for the construction of our planned factories,” an Intel spokesman told the news outlet. The news of the factory acquisition and construction comes as Intel faces criticism for its decision to delay the groundbreaking ceremony for the new plant. The company has also said that the project could be scaled back if the U.S. does not pass the CHIPS Act, which would provide tax incentives for semiconductor manufacturing. Despite the controversy, shares of Intel rose slightly more than 0.5% to $36.98 in mid-day trading on Wednesday. Looking ahead, it remains to be seen how this new factory will affect Intel’s market share and earnings in the long term. However, the company’s ability to acquire the land and start construction despite the current political climate is a positive sign for its future prospects.
On Wednesday, INTEL stock opened at $36.8 and closed at $37.0, up by 0.8% from previous closing price of 36.7. This was largely due to the company’s strong earnings report on Tuesday, which showed that its profits had more than doubled from the previous quarter.
Company’s fundamentals reflect its long term potential, below analysis on INTEL are made simple by VI app. INTEL’s Star Chart shows that it is strong in asset, profitability, dividend, and weak in growth. However, its high health score of 8/10 with regard to its cashflows and debt indicates that it is capable of safely riding out any crisis without the risk of bankruptcy. INTEL is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. At the right yield, it is suitable for those who want to invest in companies for passive income. Dividend paying companies are deemed less risky as they pursue growth at a sustainable rate.
Intel shares rose after the company announced that it was beginning construction on a new manufacturing plant in Ohio. The stock price rose by 0.8% following the announcement. The new plant is expected to create thousands of jobs in the area and help Intel keep up with demand for its products. The company has been investing heavily in manufacturing and research and development in recent years, and this latest move shows that it is committed to continued growth. Analysts believe that the stock price will continue to rise as the company continues to invest in its future. They believe that Intel is well-positioned to benefit from the growing demand for computing power.
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