INTC stock: My 10 hours study to be an investor

 

Intel’s CEO Bought His Own Stock—Should You?

Mar 21, 2022,11:16am EDT

Semiconductor chips are a strategic commodity. For the past few years, people have been saying that Intel (INTC) is at a disadvantage because most of its fabs (fabrication plants) are in the U.S. Chips can be produced more cheaply in Asia. Based in Santa Clara, California, Intel is the largest U.S. chip maker.

I think Intel’s U.S.-based factories are about to become an advantage. In the next few years, I think Congress is likely to take steps to encourage more chip production here in the U.S.

The shortage of chips needed to produce cars has focused public attention on the issue, even as U.S. relations with China have become frostier. China sits dangerously close to Taiwan, home of the chip world’s production powerhouse, Taiwan Semiconductor Manufacturing Co.

I look for Congress and the Administration to do nice things for Intel, directly or indirectly. Perhaps some of these thoughts went through the mind of Patrick Gelsinger, the CEO of Intel, when he bought 5,600 Intel shares in February. His ownership stake in the company he runs now comes to 268,946 shares, worth $12.3 million as of March 11.

Gelsinger has said that in 2010 he was pushed out of Intel, where he had served as chief technology officer. During his 11-year exile, he ran VMWare (VMW), a large software company based in Palo Alto, California. He returned to Intel as CEO in 2021.