Intel launches US$10bn accelerated buy-back, can the chipmaker play catch up with in-favor FANG stocks?

Whilst the Elon Musk’s Tesla and the ‘FANG’ stocks have soared in recent months not all tech stocks have boomed, and so it is that old-school hardware behemoth Intel Corporation (NASDAQ:INTC) is now launching an ‘accelerated’ US$10bn buy-back intended to buoy the stock. Intel chief executive Bob Swan told investors that Intel’s share price is pitched “well below” intrinsic value. In New York, Intel stock was up US$1.51 or 3.23% changing hands at US$49.88 ahead of Thursday's open. Intel’s challenges are bigger than simply being left out of the FANG and Co club, leaving them off the radar for most Robinhooders, the microchip-maker has largely struggled following delays delivering its transition to next-generation production technology In California last night, Intel confirmed that the US$10bn accelerated buy-back before the end of 2020, will see aggregate stock purchases reach US$17.5bn of the US$20bn buy-back announced previously in October 2019. The accelerated buy-back will see 166mln shares bought by the company, funded by existing cash resources. “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,” Bob Swan said.