Intel shares fell 4.3% on Wednesday after reports of an explosion at its manufacturing facility in Kiryat Gat, Israel. Three people were reportedly injured, and officials are still investigating the cause and assessing the damage.
Intel shares fell as much as 4.6% in early trading on Wednesday and were still down 4.3% as of 1:58 p.m. ET. A broader downturn among chip stocks contributed, but the specific catalyst was a report of an explosion at the company's plant in Israel.
Blast injures three at Kiryat Gat facility
Early reports suggest three people were seriously injured in the blast at Intel's manufacturing facility in Kiryat Gat. At a press conference, local police and fire officials said they suspected an exploding gas cylinder could have been the catalyst. The exact cause remains under investigation.
The explosion ignited a fire that has since been extinguished. Firefighters were working to determine the exact circumstances of the blast and were investigating the possibility of a hazardous chemical leak. Local officials said there was no evidence of a terrorist attack, though security personnel and emergency responders continued to work in the area.
Intel's trading levels on the day
The injured were evacuated to a nearby hospital and are receiving treatment. The site is one of Intel's leading facilities in the country, and the company says it has manufactured chips for personal computers for over 20 years.
Intel traded at $98.30, down 4.39% or $4.51, within a day's range of $98.03 to $101.34. Its market cap stood at $543 billion, and volume reached 64.8M against an average of 106.4M.
It is too early to tell whether the incident carries long-term implications for Intel or its shareholders, according to the source. Damage is still being assessed.
Source: The Motley Fool
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