INTC Stock Analysis: Why This Insider’s Stock Buys Are a Big Green Flag for Intel


  • Intel’s (INTC) CEO purchased company shares despite investor disappointment with Intel’s Q4 performance.
  • Intel is getting serious about building a chip-fabricating factory in Ireland.
  • My INTC stock analysis concludes that investors should strongly consider buying it.
INTC stock analysis - INTC Stock Analysis: Why This Insider’s Stock Buys Are a Big Green Flag for Intel

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Insider buying activity is typically a good sign for a company. With Intel (NASDAQ:INTC), prospective investors should be encouraged by one particular insider’s large-scale share purchases. This isn’t the only reason my INTC stock analysis is bullish, but it’s certainly an eye-opener.

Another reason to consider investing in Intel is that the company is among a small number of chip fabricators. Some other chip companies rely on Taiwan Semiconductor (NYSE:TSM) to fabricate their microprocessors.

If the U.S. is to win the global chip wars, then Intel needs to establish multiple “fabs” (chip fabrication factories). That’s a work in progress, but the next few years offer tremendous growth opportunities for Intel.

How Much INTC Stock Did the CEO Buy This Time?

Intel’s most recently published financial report disappointed some investors. Personally, I didn’t think Intel’s results were all that bad. After all, the company grew its fourth-quarter 2023 revenue 10% year over year and beat Wall Street’s EPS forecast.

Nevertheless, Intel stock sold off post-earnings. If Intel delivered a disappointing performance in Q4 2023, though, then this apparently didn’t deter the company’s chief executive from building his share position.

Reportedly, Intel CEO Pat Gelsinger bought 2,800 shares of INTC stock on Feb. 1. That’s a pretty big vote of confidence in his company, wouldn’t you agree?

With that purchase, Gelsinger reportedly holds 66,386 Intel shares in a personal account. Plus, the CEO holds another 456,915 shares indirectly through various trusts.

Is Gelsinger ultra-bullish about Intel’s artificial intelligence enabled chips? Does he foresee a revival of the personal computer (PC) market in 2024 and 2025? It’s hard to know for sure, but investors should be encouraged by Gelsinger’s evident commitment to his company.

Intel Gets Ready to Build Another Chip-Making Factory

Intel already has plans to build chip-fabrication factories in the U.S., Israel and Germany. To compete with a juggernaut like Taiwan Semiconductor, however, Intel is preparing to build an additional factory in Ireland.

Clearly, Intel is serious about building a factory in Ireland as the company is, according to Bloomberg, “seeking to raise at least $2 billion in equity” for this project. Intel has already “begun soliciting interest from potential investors.”

Intel’s proposed Irish chip-making factory is beyond the rumor phase at this point. It’s another sign that Intel seeks to compete with Taiwan Semiconductor and is playing to win.

Some traders may have panic-sold their INTC stock after Intel released its quarterly results, but they evidently didn’t see the big picture.

Intel is laying the groundwork for substantial revenue streams after the company’s fabrication factories are online. Thus, investors should play the long game instead of losing their cool and worrying about the sentiment swings of short-term traders.

INTC Stock Analysis: You Can Be a Buyer, Just Like the CEO

Gelsinger is heavily invested in his own company, and that’s a positive sign. Besides, Intel’s quarterly results weren’t so bad that investors should feel the need to dump Intel stock. 

Additionally, Intel is in the process of developing a global presence as a premier chip fabricator. That’s why my INTC stock analysis calls for higher prices – and, like the CEO himself, you should be a confident Intel shareholder.

On the date of publication, David Moadel did not have (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 Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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