Why Intel Stock Hit the Skids on Wednesday
Key Points
Initial reports suggest three people were injured in an explosion at Intel's manufacturing facility in Kiryat Gat, Israel.
Officials suggest a gas cylinder explosion may have also caused the blast and a potential hazardous materials spill.
The investigation is ongoing, and the damage is still being assessed.
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Shares of Intel (NASDAQ:INTC) were trading sharply lower on Wednesday, falling as much as 4.6% in early trading and were still down 4.3% as of 1:58 p.m. ET.
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While the overall downturn among chip stocks was a contributing factor, the specific catalyst that sent the semiconductor stock lower was a report of an explosion at Intel's plant in Israel.
Image source: The Motley Fool.
Early reports suggest that three people were seriously injured earlier today in a blast at Intel's manufacturing facility in Kiryat Gat, Israel. In a subsequent press conference, local police and fire officials said they suspected an exploding gas cylinder could have been the catalyst, but the exact cause remains under investigation.
The explosion ignited a fire that has since been extinguished. Firefighters were working to determine the exact circumstances of the blast and were investigating the possibility of a hazardous chemical leak in the wake of the explosion and the resulting blaze.
Local officials said there was no evidence of a terrorist attack and noted that, while the fire was out, security personnel and emergency responders continued to work in the area. The injured parties were evacuated to a nearby hospital and are receiving treatment.
The location is one of Intel's leading facilities in the country, manufacturing "chips that power most of the world's personal computers for over 20 years," according to the company.
As of this writing, it's simply too early to tell if there will be any long-term implications for Intel or its shareholders. Investors should continue to monitor the situation as details emerge and resist the temptation to act before all the facts are available.
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Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
