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Intel shares are on the rise after the chip company announced an accelerated $ 10 billion program for purchase. Following the completion of the repurchase, Intel said it will have $ 17.6 billion in purchases from the $ 20 billion authorization it announced in October 2019.
Intel (ticker: INTC) shares have come under pressure since the company announced last month that it was nearly a year behind in its plan to shift to 7 nanometer production technology. The stock is down 20% last month.
“While the macroeconomic environment remains uncertain, Intel shares are currently trading well below our intrinsic rating, and we believe these repurchases are currently prudent,” CEO Bob Swan said in a statement last Wednesday.
Intel said it is financing the repurchase with existing money sources. It expects to complete the remaining $ 2.4 billion of its $ 20 billion repurchase program “as markets stabilize.”
The $ 10 billion repurchase program represents just under 5% of the company’s current market value of approximately $ 205.5 billion.
Intel shares were up 3.8% on Wednesday to $ 50.17.
Write to Eric J. Savitz by [email protected]
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