Intel stock slips on Ohio plant delay chatter By

Trending 3 months ago

© Reuters Intel (INTC) banal slips connected Ohio works hold chatter

Intel (NASDAQ:) shares slipped successful US premarket trading Friday pursuing a study by nan Wall Street Journal indicating a hold successful nan company’s plans for a $20 cardinal spot installation successful Ohio.

The study has raised concerns regarding Intel’s superior expenditure strategies. However, analysts person mostly downplayed nan severity of this delay, suggesting it does not awesome impending cuts to superior spending.

Shares fell 1.4% successful pre-open trade.

Cantor Fitzgerald analysts commented that Intel’s postponement of its Ohio finance is not suggestive of a broader simplification successful wafer fabrication instrumentality (WFE) spending for instrumentality vendors.

The agent highlighted that Intel has already placed orders for instrumentality to beryllium utilized successful fabs extracurricular of Ohio, pinch nary alterations to these plans.

“Is this an rumor pinch nan process roadmap (20A, 18A etc?) Our inclination is to opportunity astir apt not,” analysts said successful a note.

“We uncertainty nan news signifies immoderate accelerated changes to plans, and presume caller capex commentary offered up connected nan net telephone a week aliases 2 backmost would person already contemplated immoderate changes,” they added.

“But nan hold does apt signify a structural reset successful nan company’s guardant gross expectations, astatine slightest for now.”

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