Global semiconductor behemoth Intel (NASDAQ:INTC) has agreed to sell an approximately 10% stake in the IMS Nanofabrication business to Taiwan Semiconductor Manufacturing Company (NYSE:TSM). The transaction values the business at ~$4.3 billion and comes only months after Intel offloaded nearly a 20% stake in the business to Bain Capital at a similar valuation.
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After this transaction, Intel will still own a majority stake in IMS, and the company will continue to function as Intel’s subsidiary. The deal is anticipated to close in the fourth quarter of this year.
Austria-based IMS is a leading name in multi-beam mask writing tools, which are used in the development of advanced extreme ultraviolet lithography (EUV). This strategic sale is expected to accelerate IMS’ growth and help the company drive innovation in the development of new patterning systems.
Today, Citi analyst Carrie Liu reiterated a Hold rating on Intel stock alongside a $34 price target. The analyst expects Intel to outperform guidance on the back of solid notebook shipments and strength in the data center segment. Earlier, Intel CEO Patrick Gelsinger noted that the company was tracking above the mid-point of its revised third-quarter revenue guidance.
Overall, the Street has a consensus price target of $36.31 on Intel stock, alongside a Hold consensus rating.
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