Intel, Apple reach tentative agreement; Nvidia 50billion-dollar investment sends shares 281.8% higher
Intel shares have risen 281.8% since the start of the year. The company has announced a shift toward foundry operations in the United States, the creation of an advanced packaging division, the appointment of former SK hynix executive Lee Seok-hee as division head, a tentative agreement to produce Apple’s M-series chips, and Nvidia’s commitment to a strategic investment of 50billion dollars. However, a forward P/E ratio of 223times coexists with a large operating loss.
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Intel shares have risen 281.8% since the start of the year, according to data. The figure is drawing investor interest as it reflects expectations for the company’s business transformation.
The company has shifted its business structure to strengthen its foundry capabilities in the United States. It established an advanced packaging division as a new business pillar.
Lee Seok-hee, formerly of SK hynix, was appointed head of the advanced packaging division. The company aims to increase production of high-value-added products through the division.
It announced that it had reached a preliminary agreement with Apple on the production of M-series chips. Specific production schedules and volumes require further announcement.
NVIDIA pledged a strategic investment in Intel, with the investment amount set at 50billion dollars. Details regarding the investment terms and timing of execution have not yet been disclosed.
The market is calculating Intel’s forward price-to-earnings ratio (PER) at 223times. Meanwhile, the company continues to record a large operating loss.
These announcements have drawn investor interest. The company’s current valuation can be assessed only after its revenue composition and changes in margins are confirmed in future earnings announcements.
Sources: Investing.com
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