Why Is Intel Stock Moving Higher Wednesday?

Intel Corp INTC stock is trading higher amid reports of its plans to secure a minimum of $2 billion in equity to finance the construction of a semiconductor fabrication plant in Ireland. 

The leading chipmaker, collaborating with a financial adviser, has initiated the process of engaging with prospective investors, Bloomberg cites familiar sources. 

This effort to raise funds comes on the heels of Intel’s 2022 agreement with Brookfield Infrastructure Partners, which saw Brookfield commit up to $15 billion for a 49% share in Intel’s manufacturing expansion at its Ocotillo campus in Chandler, Arizona.

Also Read: Intel Gears Up for Future with ASML’s Advanced Chip Machine, Set to Advance AI Processing

Interestingly, in February 2024, reports indicated that Intel postponed its $20 billion chip manufacturing project in Ohio due to market difficulties and slow government funding.

Intel is amid initiatives to tap the artificial intelligence frenzy, where Nvidia Corp NVDA is at the forefront, followed by Advanced Micro Devices, Inc AMD.

In 2023, Intel CEO Pat Gelsinger confirmed no spin-off for the chip manufacturing division. 

This unit, now named Intel Foundry Services (IFS), is set to operate as a separate business within Intel.

Intel looks to launch its Gaudi 3 AI accelerator in 2024 to challenge Nvidia’s H100. 

Intel looks to migrate AI processing to individual devices, focusing on the emerging AI PC market, which it anticipates will represent 80% of all PC sales in the next four years.

Intel stock gained over 53% last year, trailing Nvidia, which gained 216%, and AMD at 105%.

Price Action: INTC shares traded higher by 2.07% at $44.06 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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