"Intel's decision to buy back Apollo Global Management's 49% stake in Fab 34 for $14.2 billion signals a strong conviction in its manufacturing capabilities and is expected to be accretive to EPS, enhancing its credit profile from 2027 onwards."
"Northland Capital Markets called the deal bullish, anticipating improved financial health and operational autonomy for Intel, particularly in light of a looming global shortage of 3nm capacity."
"Intel CFO David Zinsner stated, 'We exit 2025 with $37.4 billion of cash and short-term investments,' indicating a strong financial footing that supports significant strategic deals."
Intel Corporation's stock increased by 4%, reaching nearly $50, driven by a $14.2 billion buyback of Apollo Global Management's stake in Fab 34 and growth in its AI hardware business. The buyback, funded through cash and new debt, is expected to enhance earnings per share and strengthen Intel's credit profile. Analysts view the deal positively, anticipating improved financial health. Intel's CFO highlighted a robust balance sheet, projecting $37.4 billion in cash and investments by 2025, supporting the company's strategic moves.
Read at 24/7 Wall St.
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