Intel Stock (NASDAQ:INTC) Plummets as Concern Mounts Over TSMC Orders – TipRanks
2025-04-25T19:02:49Z
Not long ago, we discovered that chip stock Intel ($INTC) was facing a bit of concern over potentially working with Taiwan Semiconductor ($TSM). And with new report…
Not long ago, we discovered that chip stock Intel (INTC) was facing a bit of concern over potentially working with Taiwan Semiconductor (TSM). And with new reports out very early this morning suggesting that the deal everyone thought was off was back on, there is mounting concern over why Intel is dealing in the first place. That concern has investors spooked, as shares plunged over 7% in Friday afternoon’s trading.
Despite what we have heard about Intel’s foundry aspirations, Intel is apparently still planning to outsource some of its two nanometer chip production to Taiwan Semiconductor. This has some analysts deeply concerned. Basically, with Intel looking to outsource production of its own chips when it has a process that will allow Intel to make its own chips, in house, why is it turning to any kind of outsourcing at all? Moreover, what does this say about Intel’s faith in its own process?
That suggestion is not necessarily wrong, but perhaps, it simply does not consider the whole picture. This does look bad for Intel, certainly, but remember: the 18A process is still getting fired up. It needs to be able to produce at volume. And with Intel bringing in outside business, the idea that Intel could take on its own production needs and the needs that are being outsourced to it might be a bridge too far, for now. So Intel might do well to offload some of its own production needs so it can address the incoming orders from elsewhere.
All This and an RTO Doctrine
We also know that new CEO Lip-Bu Tan has been working to radically remake Intel in several ways. Shakeups to the executive staff and that 20% layoff are certainly big steps. Not all the steps are so big, but will still be felt. For instance, the earlier-planned spinoff for Intel Capital? Now out of the picture. While we knew that the power structure around Intel Capital had changed, today’s reports found that the plan to spin it off altogether is gone.
Further, Intel is also engaging in Return To Office (RTO) mandates for its surviving staff. Starting September 1, Intel employees working remotely need to be back in the office at least four days a week. The usual reasons were cited: in-person connection “…fosters more engaging and productive discussion and debate.” But the uncited reasons were probably a lot more likely: to find layoff fodder among those who would rather take their chances in a layoff than deal with a commute again.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 27 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 36.72% loss in its share price over the past year, the average INTC price target of $22.16 per share implies 10.86% upside potential.
See more INTC analyst ratings
Disclosure
Disclaimer & DisclosureReport an Issue
Auto-posted from news source
About The Author
