Intel added that the investment, which will be made at manufacturing sites in Oregon, Arizona, and New Mexico, will support about 7,000 high-wage, high-skill jobs at those locations, part of the company's 45,000 jobs in the United States.

(Intel's (NYSE: INTC) shares initially rose this morning, but have since fallen with the rest of the market as the bailout plan is unveiled.)

The manufacturing process builds 32 nm technology -- 32/billionth of meter or about 1/millionth of an inch across -- a very small, atomic-level structure, Intel said. The first Intel processors to be built using this technology will be named "Westmere" and will be used in desktop and mobile mainstream systems.

Increased chip speed needed

Bob Lee, chief technician at Point Center Computers in Rye, N.Y., said he expects Westmere and additional 32 nm products "to further increase computer task speed, functionality, and overall system performance."

"It appears the Westmere technology will be needed, given that that Windows 7 [ Microsoft's new operating system ], will require more processing power," Lee said. "We are asking more and more of our computers, from both a thread and graphics standpoint, so the Westmere technology is keeping pace and it's a welcomed development. I look forward to evaluating how it performs."

Stock Analysis: Intel's shares have taken a beating in the past 12 months, plunging from more than $25 to the $15-range, on falling global demand for personal computers amid the U.S. and global recessions. Further, although Tuesday's announcement does not represent an increase in Intel's capital plans -- nor does it necessarily mean that many new jobs will be created -- a capital deployment of $7 billion will at least maintain 7,000 jobs (not including spin-off jobs), which is a modest positive, given current economic conditions.

Is Intel a buy here? For high-risk investors only, and the view from here argues those investors should buy only a 25% position (one-quarter) now, wait, then buy another 25% stake in three months, if U.S. economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your INTC position in the first half of 2009.

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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.