Things haven’t been looking all that great for chip stock Intel (NASDAQ:INTC) for a while now, but there was some news today that should have given it a shot in the arm. Instead, it lost just a little bit of ground as an analyst speculated that Intel would likely be manufacturing the chips for Arm Holdings.
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The new reports from TF International Securities analyst Ming-Chi Kuo noted that Intel was likely to be tapped to serve as the foundry of choice for Arm Holdings. Not only will Intel make its 18A advanced node systems available, but it will also offer up other services as well. That will make Arm a customer of Intel’s and, by extension, allow it to produce its own chips.
Kuo further noted that Arm’s chips aren’t likely to be much of a match for other chips in the field, especially given their lack of key features like baseband or multimedia-related operations. However, if things go reasonably well with the chips on hand, the end result is likely to still work in Arm’s favor.
Turning to Wall Street, analyst consensus calls Intel stock a Hold, owing to six Buy ratings, six Sell ratings, and 19 Hold ratings. Further, Intel stock comes with a downside risk of 4.41% thanks to its average price target of $36.31.