What is happening at Intel

Intel: Another setback

In times of scarce semiconductors, Intel shares are booming and investor worries about manufacturing problems are fading. On Tuesday, however, the chip giant attracted attention again with negative headlines. That happened:

Intel was sentenced to pay nearly $ 2.2 billion in a patent dispute. The proceedings before a Texan court involved two patents for technologies used in semiconductor production. VLSI was awarded $ 1.5 billion for one and $ 675 million for the second, according to court records.

Intel immediately announced that it would appeal and expressed its confidence in statements that it would be able to prevail. However, there are six other patent litigation pending in the Texas court.

Recovery rally remains intact

The current recovery rally of Intel shares triggered by the shortage of chips should not affect the conviction - especially since it is not yet final. With the appointment of the new CEO Pat Gelsinger, the advances in manufacturing problems and government subsidies for the critical US chip infrastructure as part of the “RAMP-C” program, the decisive foundations for the turnaround were laid.

In contrast to its competitors AMD, Nvidia, Xilinx, Arm and many others, Intel also benefits from the fact that you not only design chips, but also manufacture them yourself. In the quarters to come, when the chip shortage will persist, this should help Intel gain higher pricing power.

Improved profitability may well be able to continue to dispel investor concerns until the turnaround actually occurs. However, before it is clear how Intel intends to catch up on TSMC's lead and counter the new arm processors, THE SHAREHOLDER is exercising restraint. Invested investors stay with them, newcomers stay on the sidelines.

With material from dpaAFX.