Intel Stock Falls. The Chip Maker Is Spending $5.7 Billion to Fuel Its AI Push

This article first appeared on GuruFocus.

Intel (NASDAQ:INTC) shares fell about 3% on Monday even after the chipmaker said it has begun a 5 billion ($5.7 billion) investment to expand and modernize its manufacturing campus in Leixlip, Ireland, to support growing demand for artificial intelligence and high-performance computing.

Intel said the project will increase production capacity for Intel 3 silicon wafers, integrate operations across its Irish campus, strengthen research and development, and provide employee retraining. The Leixlip site serves as the company’s main European manufacturing hub and produces Intel 3 process technology wafers.

Intel added that the new manufacturing equipment will support production of Intel Xeon 6 processors and future Xeon products built on its Intel 3 process. The investment is expected to create several hundred jobs, expanding Intel’s workforce of about 4,900 employees in Ireland.

Intel expects most of the spending to be completed by the end of 2027. The company said the project accounts for roughly 30% of its planned $17 billion capital expenditure for 2026 and builds on approximately 30 billion invested in Ireland since 1989.