Chipmaker Intel Corporation (NASDAQ: INTC) has plans for building a new plant in Columbus, Ohio, the largest economic development project in the state’s chapter, according to The Columbus Dispatch.
An investment of around $20 billion and employment of 3,000 workers are anticipated from the project in the pipeline, which is expected on 3,200 acres of land at New Albany. The world’s largest semiconductor chip manufacturer by revenue is expected to officially announce the news later this week.
The plant should infuse money and jobs into the area. Jersey Township trustee Dan Wetzel told Columbia Dispatch, “Jersey Township will never be the same after this, that’s for sure.”
Back in 2021, to cater to the increase in demand for semiconductors and expand capacity in the U.S., Intel CEO Pat Gelsinger announced a plan to invest $20 billion in two chip manufacturing firms in Arizona. His plan included the creation of 3,000 in-plant jobs, 3,000 construction jobs, and about 15,000 local jobs. Further, in August, Gelsinger’s updated plan indicated building of six to eight plants for $100 billion by 2030.
Notably, Intel’s hopes rely on the passing of legislation in Congress providing incentives to bring chip manufacturing back to the U.S. That hope rests on the U.S. Innovation and Competition Act, which was passed by the Senate in June to provide federal investments of $52 billion for research, design, and manufacturing.
During the 2021 Leadership Summit, Gelsinger commented, “The Asian countries said they did want (the industry) and they invested to bring it to Asia. What sits before Congress is: Do we want to level the playing field?”
Wall Street’s Take
Recently, Barclays analyst Blayne Curtis maintained a Sell rating on Intel but increased the price target to $50 (10.23% upside potential) from $45.
Curtis foresees “positive outlooks providing some relief” for the semiconductor sector but not confident of “how much upside is left as cyclicality still looms for many names.”
Overall, the stock has a Hold consensus rating based on 6 Buys, 12 Holds, and 7 Sells. The average Intel price target of $55.76 implies that shares are fully valued at current levels. Shares have gained 3.3% over the past six months.
Intel scores a “Perfect 10” from TipRanks’ Smart Score rating system. This makes it one of TipRanks’ Top Stocks and implies that the stock has strong potential to outperform market expectations.
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