At the end of July, Intel’s stock price dropped significantly after the then head of the company admitted the need to more actively use the services of contract manufacturers. Only the appointment of Patrick Gelsinger as new CEO was able to strengthen the belief in Intel’s technological power, and his corporate development program provided additional support for the stock price.

The $ 60 mark for the first time after the July fall, Intel shares were able to overcome in January this year, when it became known that Patrick Gelsinger, who previously worked as the corporation’s technical director, had returned to the company. His performance as CEO made a favorable impression on investors, judging by the dynamics of Intel shares – they rose in price immediately by 6,6% to $ 67,65.

Recall that the new management of Intel announced the timing of the appearance of the first 7nm client processors Meteor Lake, and also confirmed the elimination of problems with the corresponding lithographic technology. This year alone, capital expenditures will be increased to $ 20 billion, and the company will begin construction on two cutting-edge facilities in Arizona that will be able to serve not only Intel, but also third-party customers from 2024.

The corporation intends to regain not only technological leadership, but also the status of the manufacturer of the fastest central processing units, although this will not be possible until 2024. Intel expects to become a major contract manufacturer, build factories in Europe and other regions. Finally, Intel’s $ 72 billion in annual revenue forecast almost coincided with analyst consensus, so Intel shares began to rise in value immediately after the speech of the new head of the company, although the trading session had already closed.

In comments to Barron’s, the Intel CEO said that the ability to manufacture leading-edge components in-house and offer similar services to third-party customers, combined with the technological capabilities of other manufacturers, form the “three pillars” in business development that give the company a unique position in the market. Shares of rival AMD fell in price by 2,32%, TSMC securities fell in price by 2,99%, but shares of ASML rose by 3,76%, as Intel will actively buy lithographic equipment from the latter.