Recently, chip stock Intel (NASDAQ:INTC) announced plans to build a major new operation in Germany, and started off toward building it. Then, an unexpected problem emerged: finding workers for that chip plant became a tougher and tougher challenge. This latest reversal for Intel proved too much for some investors, who took with them just over 1% of Intel’s market cap as a result.
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The word out of Germany noted that Intel needs around 3,000 people to fully staff the Magdeburg chip works, though it’s got until the end of the decade to pull that off. Given that Intel’s apprenticeship program for chip making is now a whopping two, there’s a serious problem in the works here. Things are on the move, however; next August, Intel expects to have a class of 20 get started.
No one’s sure why Intel’s having such a tough time since even universities in the area are preparing chip making degrees to back Intel up.
Is Intel Stock a Hold or Sell?
Analysts, meanwhile, are taking a cautious stance. With six Buy ratings, 20 Holds and five Sells, Intel stock is consensus-rated as a Hold. Further, with an average price target of $36.13, Intel stock offers investors a modest 6.55% upside potential.
