For some time now, chip stock Intel (INTC) has been working on getting its house in order production-wise, with the 18A process potentially set to go live, and 14A waiting in the wings. Now, reports note, 18A has kicked off in Arizona, and some of the produce of that process will be shown off in a little over a week. This news lit a fire under investors, and Intel shares shot up nearly 5.5% in Wednesday afternoon’s trading.
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Intel launched what reports called a “Tech Tour” in Arizona, and also offered up some word about the 18A process node. Apparently, production has begun, and shipments of finished processors will start up soon. Wafers produced under 18A are apparently already in production, and initial output of Intel’s own CPUs is set to start up this quarter.
And then, as if that were not exciting enough, Intel revealed that it will show off the Panther Lake lineup on October 9 during a tour. The Panther Lake AI PC chip is expected to ship before the end of this year, and is part of a set of firsts for Intel. The Arizona fabs are reportedly the first in the United States to engage in 2 nm-class production, and Intel is also apparently first to use backside power delivery in chips offered for market.
Morale is “In the Toilet”
While this is certainly a note of good news—more than one, actually—there are still concerns about Intel’s internal culture. In fact, one of the biggest concerns right now—according to a “…former longtime employee in project management”—is “in the toilet.” Intel’s culture had become one not of innovation and discovery but a pure grind, with “…heads-down, push-through situation…” becoming perhaps the best description.
In fact, some longtime Intel employees remember a time when the company celebrated accomplishments with actual parties, and were encouraged to take time off between major projects to “…give time back to your family.” There was even a sabbatical program: four straight weeks of paid leave every four years, or eight weeks every seven years, and that was on top of vacation allowances.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on two Buys, 27 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 49.84% rally in its share price over the past year, the average INTC price target of $26.18 per share implies 25.71% downside risk.
