Intel’s stock has plummeted by 7% after reports emerged that it may be outsourcing its two-nanometer chip production to Taiwan Semiconductor, sparking concerns over why the company is dealing with a third-party firm when it can produce chips in-house.
Intel’s CEO, Lip-Bu Tan, has been working to remake the company through various means, including staff shakeups and layoffs. However, some analysts question the need for outsourcing, especially given Intel’s plans to use its own 18A process technology. With the process still undergoing ramp-up, it may not be ready to handle large-scale production needs.
Analysts’ consensus rating on INTC stock remains a Hold, with a Buy being assigned in the past three months. Despite a 36.72% loss in share price over the past year, analysts expect 10.86% upside potential from an average target price of $22.16 per share. The new CEO’s “Return To Office” mandate for surviving staff may also have implications for employee morale and productivity.
Source: https://www.tipranks.com/news/intel-stock-nasdaqintc-plummets-as-concern-mounts-over-tsmc-orders