We know that chip stock Intel (INTC) has been making a push for investment from just about anywhere it can get it. Governments, competitors, and more are all fair game as Intel looks to land cash and make things happen in the market. New reports suggest that Intel is going after Saudi Arabia in an attempt to land a new deal. Shareholders were happy, though, sending shares up around 3% in Monday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Intel’s CEO, Lip-Bu Tan, headed out to meet with Abdullah Al-Swaha, the Saudi Minister of Communications and Information Technology, to attempt to reach a “partnership on new fronts.” While nothing more specific has come out as yet, it is still clear that Saudi Arabia is one of the biggest economies in the entire Middle East.
If Saudi Arabia takes a greater interest in semiconductors, that would be a bit of a shift, but it would also be a major potential new vector for Saudi Arabia to work. Granted, Saudi Arabia does not have a lot of manufacturing experience. However, it is eager to place investments in such things, sufficiently so that some call it “fond” of such investment.
It’s Official
Meanwhile, last week, we found out about Intel potentially having a new, and very big, client for elements of its 18A process node. The early word suggested it may have been Microsoft (MSFT), and as it turns out, so too does the newest word. Intel will now be producing the Maia 2 next-gen AI processor, and may be part of a larger partnership to come.
Given what is known about the Maia line, though, suggests good news for Intel. Typically, Maia processors have a larger die size. For Microsoft to have sufficient faith in Intel to produce the Maia suggests that the 18A node can produce better than expected. It also bodes well for any other Intel customers that Intel can handle the Maia, as other, smaller processors should work just as well.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on two Buys, 25 Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 62.04% rally in its share price over the past year, the average INTC price target of $29.48 per share implies 22.81% downside risk.
