In this video, I will be going over Intel's (INTC +2.17%) new agreement that will see it and Brookfield Asset Management invest up to $30 billion in chip factories in Arizona.
- We know that Intel has a long way back to the top if it manages to turn things around. That will require a lot of capital.
- It could use all the help it can get because in the second quarter, Intel reported earnings per share (EPS) of $0.29, a decrease of 79% year over year, and gross margin came in at 44.8%, down 15 percentage points YOY.
- On top of that, Intel's current and future products face fierce competition from AMD and Nvidia.
- The CHIPS Act certainly helps, but for a company that isn't becoming more profitable these days, more capital is always welcome.
- Intel has signed an agreement with Brookfield to invest up to $30 billion in chip factories in Arizona. The agreement is a first in the Semiconductor Co-Investment Program (SCIP).
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*Stock prices used were the closing prices of Aug. 23, 2022. The video was published on Aug. 24, 2022.
