World leading chip manufacturer Intel Corp. (INTC) says going forward it won’t be focusing of executing share buyback programs. Normally companies engage in buying back their stock when they want to push its price up.
This was announced by the company’s chief executive officer Pat Gelsinger during a 60 minute interview the CBS news magazine. “We will not be anywhere near as focused on buybacks going forward as we have in the past,” said the CEO.
Gelsinger made the revelation after he was asked to compare how much the company was spending to buy back its stock to what the company is investing in research and development.
Citing regulatory filings, in the first quarter ended March 31, Intel spent $2.3 billion to buy back its own shares.
The CEO said the move to avoid any share repurchasing in the future was reached upon after it had been agreed upon by the company’s board of directors.
The chief executive added that Intel is making plans to begin producing car chips for automakers including General Motors Co. (GM) and Ford Motor Co. (F).