Intel stock pops as it buys back Ireland chip fab in sign of strength

Intel Shares rose 9% on Wednesday after the US chipmaker said it would buy back a 49% equity stake it does not own in its Fab 34 chip facility in Ireland for $14.2 billion.

Semiconductor company sells 49% stake in Irish manufacturing facility to acquirer Apollo Global Management To $11.2 billion in 2024.

“Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, allowing us to accelerate critical initiatives,” Intel said. CFO David Zinser he said in a press release. “Today we have a stronger balance sheet, improved financial discipline and an improved business strategy.”

This move is a sign that the company is returning to solid foundations with renewed confidence.

When Intel sold its shares in 2024, it was a very different time for the US chipmaker. The company was in the midst of a $100 billion investment to expand chip production in the U.S., including a major chip manufacturing facility, or factory, that opened in Arizona last year.

After years of lagging behind the chip manufacturing leader Taiwan Semiconductor Manufacturing Companyformer CEO Pat Gelsinger went all-in on Intel’s U.S. foundry ambitions. He was ousted at the end of 2024, but Intel’s Arizona chip factory project remains on track.

Intel said the buyback agreement was “supported by the growing and important role CPUs play in the age of artificial intelligence.”

Intel now produces chips at 18A, its most advanced node in Arizona, but has yet to land a major external customer. For now, Intel is its main customer and produces its Core Ultra series 3 PC processors at this facility.