Intel (INTC) to Focus Less on Buybacks Says CEO After Committing Another $600 Million to Expand R&D in Israel

May 3, 2021 6:25 AM EDT

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Intel (NASDAQ: INTC) will focus more on research and development (R&D) and less on stock buybacks going forward, the company’s Chief Executive Pat Gelsinger told CBS' '60 Minutes' yesterday. In Q1 Intel spent $2.3 billion on share repurchases.

"We will not be anywhere near as focused on buybacks going forward as we have in the past," he said after being asked how much INTC has spent buying its own stock compared to its spending on R&D.

Gelsinger also said that Intel is planning to adjust its production in some of its factories as it works to ramp up chip output for cars.

His comments on stock buyback come as the new CEO visited Europe for the first time since taking over INTC. While in Isreal, Gelsinger said Intel will invest another $600 million in Israel to expand its R&D facilities while he also confirmed a $10 billion investment in a new chip plant in this country.

Our continued investment to extend our existing R&D facilities and increase our manufacturing capacity in Israel, coupled with our acquisitions of Mobileye, the global leader in driving assistance and self-driving solutions, Moovit smart-transit, and Habana Labs for leadership AI, promise a vibrant future for Intel and Israel for decades to come,” Gelsinger said in the statement.

“Mobileye is a major growth business that’s deemed to be a key part of Intel’s future,” he added.

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