Intel, the U.S.-based contract chip manufacturer, experienced a remarkable year in 2023, with its stock nearly doubling. However, the start of 2024 has brought about a downtrend in Intel’s stock value. Despite this, CEO Pat Gelsinger displayed confidence in his company by purchasing shares on the open market.
Last year, Intel witnessed a significant surge in its stock value, skyrocketing by 91% – the largest percentage gain in two decades. This tremendous growth can be attributed to Intel’s continuous efforts in establishing itself as a major player in the U.S. chip manufacturing industry. Unfortunately, on January 26th, Intel’s shares suffered a 12% drop due to underwhelming guidance provided by the company, which overshadowed their strong fourth-quarter report.
Pat Gelsinger, known for buying Intel stock during dips, once again seized the opportunity during this downturn. On January 29th, he invested $130,100 to acquire 3,000 shares, at an average price of $43.36 per share. According to a form filed with the Securities and Exchange Commission, Gelsinger made this purchase through a family trust that now holds a total of 28,475 shares. Additionally, Gelsinger personally owns 62,023 Intel shares in a separate account, along with an additional 457,000 shares through other trusts.
Intel chose not to provide any comments from Gelsinger regarding his recent stock purchase.
In December, Gelsinger shared his belief that artificial intelligence (AI) would revolutionize the business world and beyond. He highlighted how AI advancements would greatly enhance communication by enabling real-time translation, transcription, and contextualization during video conference calls.
When it comes to China’s potential challenge to U.S. leadership in AI, Gelsinger remained unfazed, stating that nearly all major AI innovations have originated from the West over the past decade. He emphasized his view that this trend is unlikely to change.
