Will Intel’s $20 Billion Bet On Chipmaking Rejuvenate Struggling Company? Wall Street Is Skeptical

Will Intel’s $20 Billion Bet On Chipmaking Rejuvenate Struggling Company? Wall Street Is Skeptical

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Intel is seeking to regain its stature as a dominant chipmaker after years of losing market share and lagging technological innovation, but analysts are generally skeptical the company's ambitious new strategy for in-house chip manufacturing and third-party deals will pay off.

UKRAINE - 2021/02/19: In this photo illustration an Intel logo is seen on a smartphone. (Photo ... [+] Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)



SOPA Images/LightRocket via Getty Images



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On Tuesday, Intel CEO Pat Gelsinger unveiled a plan to spend $20 billion on two new factories in Arizona to manufacture chips for other corporations, while concurrently increasing its outsourcing arrangements with third-party chip component partners, including possibly rivals like Taiwan Semiconductor and Samsung Electronics.





Luke Lloyd, investment strategist at Strategic Wealth Partners in Independence, Ohio, which manages $500 million in assets, is unimpressed by the latest developments, saying that while Intel used to be a “revolutionary company at the forefront of technology and computer processing,” over the past few decades, Intel's failure to continue to innovate has been a “huge headwind” for the company.