This was a big day for chip stock Intel (INTC), and of that there can be no question. We all know the cash crunch that Intel has been facing over the last few months, but new reports suggest that Intel just plugged a roughly $840,000 hole in the budget, as it stopped alleged embezzlement in progress. That was good enough for investors, too, who sent shares jumping nearly 3% in Tuesday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The alleged embezzlement in question, reports noted, took place in the Israeli branch, and Intel Israel has already fired up legal proceedings against former employee Natalia Avtsin and former component supplier Yafim Tsibolevsky. Further, the alleged embezzlement, reports note, ran from October 2023 all the way to November 2024, when Intel first exposed the matter.
Avtsin, who was fired from Intel Israel as part of an overall streamlining effort—which reportedly had nothing to do with the alleged crime—would ask Tsibolevsky for price quotes on several pieces of hardware. She would then “alter the transaction classification” when sending the quotes on to her manager. By changing the classification from “components” to “services,” the transactions could slip through standard vetting procedures, and avoiding the worst scrutiny. Tsibolevsky also kept his invoices small, which also kept some vetting procedures out of the picture as well.
Keep the Tariffs Out of It, Huh?
Meanwhile, Intel also took aim at a field that is increasingly proving difficult to navigate for businesses of all stripes: tariffs. Specifically, the United States’ tariffs on a range of products, which in this case applies to semiconductors. Intel joined a coalition of other chipmakers, notably Qualcomm (QCOM) and Micron (MU), to try and get the Trump Administration to back down on the tariffs in question.
Such tariffs, the coalition noted, is likely to raise production costs and potentially hamper sales, as well as raise other “difficulties” in the broader market. Intel in particular, for its part, wanted an exemption for wafers produced inside the United States or with United States technologies. And with several production facilities still to be built within the United States—and jobs accordingly to follow—Intel wants to be sure its market will be as open and available as possible.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 35.45% loss in its share price over the past year, the average INTC price target of $21.29 per share implies 3.53% upside potential.
