Shares of Intel Corp. rose 5.2% Tuesday, lifted by the announcement of a $25 billion investment in Israel.
Intel’s stock
INTC,
notched its biggest daily percentage gain since Nov. 16, when it rose 6.8%. The S&P 500 index
SPX
rose 0.4% on Tuesday.
The chip giant’s investment comes after Intel secured $3.2 billion in incentives from Israel, according to Bloomberg. The Times of Israel reports that Intel’s $25 billion investment will support a chip-manufacturing plant in the city of Kiryat Gat that will employ thousands of workers and is expected to start operations by 2028. The deal was agreed in principle in June, according to the Times of Israel.
Related: Intel’s $25 billion investment in Israel ‘important and significant’ says country’s finance minister
Kiryat Gat is located about 12 miles from the border with Gaza. Israeli Finance Minister Bezalel Smotrich described the move as “important and significant” in a post on X, formerly known as Twitter.
“This investment will promote quality employment with high productivity in the peripheral settlements and will affect the growth of the Israeli economy,” Smotrich tweeted.
Intel is one of the largest employers in Israel’s high-tech industry, with 11,700 employees in the country, according to the company’s website. The chip giant’s workforce in Israel includes 3,900 employees in manufacturing and 7,800 in development roles. Based on 2022 data, Intel’s Israeli operations account for $8.7 billion in exports, or 5.5% of the country’s high-tech exports and 1.75% of its gross domestic product.
Related: ‘Magnificent Seven’ up for another bull run? What to expect from technology stocks in 2024.
MarketWatch has reached out to Intel with a request for comment.
Intel’s stock is up 90.2% in 2023, outpacing the S&P 500’s gain of 24.3%.