Intel (NASDAQ:INTC) has reportedly scored a €10B (~$10.9B) subsidy deal with the German government for a new semiconductor plant in Magdeburg, according to Bloomberg. German Chancellor Olaf Scholz and Intel CEO Pat Gelsinger are set to officially ink the agreement at a ceremony in Berlin. This comes after announcing a $25 billion investment in Israel as the company looks to diversify outside of Asia.
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It’s a significant boost for the chipmaker, which initially expected €6.8B from the state but ultimately saw this figure rise to €9.9B. The package includes conventional financial aid and energy price caps. Last year, Intel projected an investment of €17B in the Magdeburg plant, a figure that has now increased to €30B. The firm also plans to set up a $4.6B semiconductor facility in Poland to strengthen the EU’s chip supply chain resilience.
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 17 Holds, and four Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $31.16 per share implies 14.32% downside potential.