Did Intel Just Get Saved?
In this video, I will be going over Intel's (NASDAQ: INTC) new agreement that will see it and Brookfield Asset Management invest up to $30 billion in chip factories in Arizona.
- We know that Intel has a long way back to the top if it manages to turn things around. That will require a lot of capital.
- It could use all the help it can get because in the second quarter, Intel reported earnings per share (EPS) of $0.29, a decrease of 79% year over year, and gross margin came in at 44.8%, down 15 percentage points YOY.
- On top of that, Intel's current and future products face fierce competition from AMD and Nvidia.
- The CHIPS Act certainly helps, but for a company that isn't becoming more profitable these days, more capital is always welcome.
- Intel has signed an agreement with Brookfield to invest up to $30 billion in chip factories in Arizona. The agreement is a first in the Semiconductor Co-Investment Program (SCIP).
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*Stock prices used were the closing prices of Aug. 23, 2022. The video was published on Aug. 24, 2022.
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Neil Rozenbaum has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Brookfield Asset Management, Intel, and Nvidia. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
