Intel (NASDAQ:INTC) stock is in focus following a half-a-million-dollar insider purchase by CEO Patrick Gelsinger. The purchase came just one day after Intel announced a $30 billion collaboration with Brookfield Asset Management (NYSE:BAM) to expand its chip-making facilities in Arizona.
The collaboration will see Brookfield invest up to $15 billion in return for a 49% stake in the expansion project. Intel will own the remaining stake and oversee operating control of its two facilities in Arizona. Profits from the facilities will be evenly split between the two parties.
In addition, Intel finance chief David Zinsner disclosed that Intel will pay Brookfield interest between 4.4% and 8.5% for its investment. He added that the collaboration “builds on the momentum from the recent passage of the CHIPS Act in the U.S.”
With that in mind, let’s get into the details of Gelsinger’s INTC stock purchase.
INTC Stock: CEO Pat Gelsinger Purchases 14,800 Shares
On Aug. 24, Gelsinger purchased 14,800 shares at an average price of $33.86 per share. After the purchase, he directly owns 77,216 shares, while his trust owns 266,530 shares. The CEO’s purchase seems to be a stamp of approval for Intel’s recent investment.
In addition, Gelsinger, along with other industry officials, expects annual semiconductor sales to almost double by 2030 to over $1 trillion. Semiconductors are used in a multitude of everyday products, ranging from cell phones to vehicles.
The recently approved CHIPS Act also marks a positive catalyst for Intel. The act will provide $52.7 billion of subsidies for U.S. semiconductor research and development.
Let’s take a look at other investors betting on Intel’s success.
Who Else Is Betting Big on Intel?
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During Q2, an impressive 2,562 funds owned a stake in the chip company, down from 2,774 funds in the prior quarter. Meanwhile, the institutional put/call ratio sits at 0.97. This means that investors own about the same number of call options against the company as put options. So, who are Intel’s top five shareholders?
- Vanguard: 357.8 million shares.
- BlackRock (NYSE:BLK): 347.95 million shares.
- State Street (NYSE:STT): 176.15 million shares.
- Capital International Investors: 87.67 million shares.
- Geode Capital Management: 79.98 million shares.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
