Rep. McCaul Benefits As Intel Gains on Improved Visibility
Shares of Intel Corp (INTC:US) are trading nearly 10% higher this week after the chipmaker issued positive updates during its investor webinar that took place on Wednesday.
The company said it is working hard to execute its product roadmap and regain lost market share.
"Our 4th-gen Xeon is high quality and ramping strong, and we're getting back to schedule predictability with 5th-gen Xeon, which we'll ship in Q4 of this year," Sandra Rivera, who leads Intel's Data Center and AI Group, said on the investor call.
These comments facilitated a rebound in stock, which resulted in the biggest daily jump since November. The company is preparing to report Q1 results in April after delivering a very weak earnings report in January.
Moreover, Intel delivered a massive dividend cut in February as it fights to control costs amid lackluster sales. It reported in January that its YoY sales fell 32%, resulting in a $664 million net loss for the fourth quarter of 2022.
“No words can portray or explain the historic collapse of Intel, with management attempting to blame a worst-ever PC inventory digestion dynamic and macro/China/enterprise to an over 20% q/q decline in sales,” Rosenblatt analyst Hans Mosesmann said in January.
In February, Congressman Michael McCaul reported his investment in chipmaker as he spent hundreds of thousands of dollars to back the troubled company. His investments reported in March are not a novelty given that Mr. McCaul started aggressively buying Intel shares in October last year.
The latest transaction saw him spend $250,000 - $500,000 to buy Intel shares on February 03, when the stock closed at $30.32.
Intel shares closed at $32.09 on Thursday.
