Not long ago, we discovered that Chip Stock Intel (ITC) faced a little concern about work potentially with Taiwan Semiconductor (TSM). And with new reports very early this morning suggesting that the agreement that everyone was thinking was back, there are concerns about the reason why Intel deals in the first place. This concern frightened investors, while shares plunged more than 7% in Friday afternoon trade.
Despite what we have heard of the aspirations of the Intel Foundry, Intel apparently always plans to outsource part of its production of nanometric fleas in Taiwan semiconductor. This has deeply concerned analysts. Basically, with Intel trying to outsource the production of his own chips when he has a process that will allow Intel to do his own chips, internally, why does he turn to a kind of outsourcing? In addition, what is the said of Intel’s faith in its own process?
This suggestion is not necessarily wrong, but perhaps, it simply does not consider the whole image. It seems bad for Intel, certainly, but remember: the 18a process is always excited. It must be able to produce in volume. And with Intel which proceeds outside business, the idea that Intel could meet its own production needs and the needs which are outsourced could be a bridge too far, for the moment. Intel could therefore do well to unload some of its own production needs so that it can meet the incoming orders elsewhere.
All this and a RTO doctrine
We also know that the new CEO LIP-BU Tan has worked to repeat radically intel in several ways. Executive staff and 20% of layoffs are certainly large stages. Not all steps are so large, but will always be felt. For example, the spin-off provided for Intel Capital? Now out of the image. While we knew that the power structure around Intel Capital had changed, today’s relationships revealed that the plan to run it completely disappeared.
In addition, Intel is also back in return to office mandates (RTO) for its surviving staff. From September 1, Intel employees working at a distance must be back at the office at least four days a week. The usual reasons were cited: the connection in person “… promotes discussions and a more engaging and productive debate.” But the reasons not were probably much more likely: finding the fodder at laying up among those who prefer to take their chance in a layoff rather than doing again in a journey.
Is Intel a purchase, an outfit or a sale?
Turning to Wall Street, analysts have a consensus note on Intc shares on the basis of a purchase, 27 holders and four sales awarded in the last three months, as indicated by the graph below. After a loss of 36.72% of its share price in the past year, the average Intc price target of $ 22.16 per share implies an increase of 10.86%.
See more notes of Intc analysts
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