INTEL yesterday boosted its share buyback plan by $10bn (£6.3bn), seeking to revitalise its flagging stock amid criticism it is getting left behind by rivals like Nvidia in a red-hot, fast-moving mobile market.
Intel is increasing its quarterly dividend by 15 per cent to 18.12 cents per share and the extension of its share buyback funds increased the amount available for repurchases to $14.2bn, a sizable amount compared to Intel’s market capitalisation of $116bn.
The world’s largest chip maker has splashed out in the past year on two major acquisitions, including security software firm McAfee, and plans to double its capital expenditure. Now it is again reaching into its $22bn cash hoard to try to assuage investors peeved at a seemingly moribund stock price.
Intel commands 80 per cent of the PC market, a situation expected to persist for years.
City A.M. Reporter