Chip stock Intel (NASDAQ:INTC) has been working to get a new fabrication plant up and running in Italy. The move hasn’t exactly been smooth so far, but it’s apparently seen enough progress to keep investors reasonably happy. Intel was up fractionally in Thursday afternoon’s trading, thanks largely to what progress has been made so far.
The reports note that the Italian plant is still on the back burner, with talks between Intel and the Italian government not really going anywhere. The fabrication plant is part of a larger play on Intel’s part to put $77.5 billion into European operations over the next 10 years. Adolfo Urso, Italy’s Industry Minister, noted that Italy offered some incentives to get Intel into the country, but that wasn’t enough to tip the deal to one side or another. Intel, however, didn’t ask for any extra incentives as of yet, so apparently, Intel is more mulling the offer over than anything else. Intel already has at least one plant in the country, in Vigasio, about 70 miles away from Venice.
The news comes at a good time, as Intel might need more fabrication capacity soon. Reports note that it’s just launched a new kind of program for PC hardware designed to bring it better in line with AI development. Now, the new Meteor Lake chips will have AI capabilities built-in, and Intel is working with over a hundred software developers to ensure that the new capabilities will actually be put to use when they go live in people’s PCs.
Is Intel a Hold or a Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on six Buys, 20 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average INTC price target of $36.67 per share implies 2.65% upside potential.
