Sometimes, you have to wonder just what shareholders want. Chip stock Intel (NASDAQ:INTC) announced a hefty new payday from the feds as part of the CHIPS Act, but investors seemed indifferent about the whole matter, budging Intel shares up only fractionally in Wednesday morning’s trading.
Intel is in line to land up to $8.5 billion in direct cash from the federal government. It may also receive a loan package of $11 billion from the same source. The move is part of a wider push to bring and keep semiconductor production in the United States. It’s worth noting, however, that the agreement between Intel and the government is “…nonbinding and preliminary and could change.” This might be why investors are less than enthusiastic about that big new potential slug of cash.
Intel Gearing Up for $100B Capital Outlay
Though the latest news is good for Intel’s bottom line, it turns out that the firm already has plans for that $8.5 billion. Intel is already gearing up for a massive capital outlay of about $100 billion, which will go to Intel operations in four different states: Arizona, New Mexico, Oregon, and Ohio. Ohio will actually get a complete site out of the deal, which will be ready to go by either 2027 or 2028.
What Is the Target Price for INTC?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on eight Buys, 24 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 50.12% rally in its share price over the past year, the average INTC price target of $47.22 per share implies 12.08% upside potential.
