INTEL: 11-billion-dollar investment...!

Our buy limit of USD 29.50 expired at the end of May; unfortunately, the price decline stopped at USD 29.73, just above our limit. As we are fundamentally convinced by the chip manufacturer INTEL - even though Nvidia seems to be the measure of all things - we are raising our buy limit to USD 31; our hopes are pinned on the second half of the year anyway. Among other things, the news that INTEL has reached a final agreement with investor Apollo on an investment of USD 11 bn attracted attention. Apollo will acquire a 49% stake in the joint venture that will operate INTEL's state-of-the-art semiconductor fab (Fab 34 in Leixlip, Ireland). "The agreement between INTEL and Apollo gives us additional flexibility to execute on our strategy to build the world's strongest and most sustainable semiconductor supply chain. Our investment in state-of-the-art capacity in the US and Europe will be critical to meet growing demand. The global semiconductor market will double in the next five years," said David Zinsner, CFO of INTEL. This will also allow the company to maintain its strong investment grade rating. It is expected that the investment will be classified as "equity-like" from a credit rating perspective, which will have a positive impact on the balance sheet. With all due respect for the high quality of Nvidia, but in our opinion this bubble of a market capitalization of now USD 3 trillion (rank 3) will burst sooner or later. We will certainly not be jumping on this "express train", although the forthcoming split of the Nvidia share may provide further (cosmetic) fantasy. Will INTEL's high investments also pay off soon? They have to, otherwise...!

INTEL is listed on the NYSE in New York under the symbol INTC, the security number is 941,595, last price approx. USD 30.72.