Intel (Nasdaq:INTC) plans to invest $7.10 billion in Malaysia. Reuters reports, citing Malaysian authorities, that the U.S chip giant plans to build a new state-of-the-art facility in the country. INTC shares fell 1.17% to close at $50 on December 13.
Intel is a U.S. company that designs, manufactures, and sells microprocessors, chipsets, flash memory, and other products for computer storage networks and other functions.
Intel Malaysia Investment
The Malaysian Investment Development Authority has announced that the chip giant settled on the country to bolster its manufacturing capabilities. Consequently, Intel plans to build a state-of-the-art facility in the Northern state of Penang.
The facility will handle Intel’s advanced semiconductor packaging technologies.
Last week, Morgan Stanley analyst Joseph Moore reiterated a Buy rating on Intel, with a $55 price target implying 10% upside potential to current levels. The bullish rating comes on the chip giant management affirming intentions to list shares of the Mobileye standalone business unit, mid-next year.
According to the analyst, Mobileye has continued strengthening its business in a quickly growing market. With customer engagement levels remaining strong, it should continue to win new businesses at a market-leading rate.
“We believe that Intel can now extract some value from the business in a way where they still hold majority ownership over a highly strategic asset in a diversified market, but can also free up some additional capital and attention to commit to the core business that is still badly in need of a turnaround,” Moore said.
Consensus among analysts is a Hold based on 4 Buys, 12 Holds, and 7 Sells. The average Intel price target of $53.80 implies a 7.60% upside potential to current levels.