Delayed orders don’t tend to mean good things, especially when it’s from a major corporation. New reports note that Intel (NASDAQ:INTC) is doing just that on an upcoming chip order. The move sent Intel shares down considerably in Tuesday afternoon trading.
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Intel delayed an order it was set to place with Taiwan Semiconductor (NYSE:TSM), where Intel would have taken delivery of 3nm chips. Now, however, Intel won’t take possession of that order until the fourth quarter of 2024. That’s a pretty long delay. Neither Intel nor Taiwan Semiconductor offered comments about the deal. However, reports noted that Intel was looking to modify its output on Arrow Lake chips thanks to a combination of rising costs and slimmer demand for home PCs.
Tech stocks have been taking a beating all over lately. The massive number of layoffs we’ve heard about in the sector so far makes that clear. Intel has been no different, and reports about AMD (NASDAQ:AMD) eating Intel’s lunch in the home-based PC market aren’t helping. There may be a method to Intel’s madness on this front, though; if the reports about delays are all correct, that could mean that Arrow Lake processors will start hitting the market in late 2024. That could put Intel in a good position for the holiday shopping season, even if it won’t be for nearly another two years.
However, Intel’s position with analysts isn’t really that solid. Currently, analyst consensus calls Intel a Hold. With 16 out of 27 analysts calling it a Hold, it’s clear that Intel stock isn’t in an attractive position going forward. Only three analysts call it a Buy, and the remaining eight are urging a Sell.
