After Intel Corp. (INTC) shares dropped nearly 19% in the past month, the chip maker announced Wednesday that it plans to spend $10 billion on its own stock by the end of the year. Shares gained nearly 4% in after-hours trading after the announcement. Intel said it would enter into accelerated share repurchase agreements as part of a plan announced in October to buy back $20 billion in stock, with one such deal guaranteeing the return of 166 million shares and the rest aiming to be complete by the end of 2020. "While the macro-economic environment remains uncertain, Intel shares are currently trading well below our intrinsic valuation, and we believe these repurchases are prudent at this time," Chief Executive Bob Swan said in Wednesday's announcement. Intel has struggled with its engineering process on new chips as rival Advanced Micro Devices Inc. (AMD)has flourished and taken market share ( ) and Nvidia Corp. (NVDA)has surpassed Intel's market capitalization ( ). After closing with a 0.7% decline at $48.33, shares topped $50 in after-hours trading Wednesday.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 19, 2020 17:56 ET (21:56 GMT)
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