Bernstein says Intel (INTC) was supposed to get $10.9B of CHIPS Act funding for free. Giving this up for a 10% stake by the U.S. government “seems worse,” the analyst tells investors in a research note. The firm says that besides money, Intel needs customers, and it is conceivable that as part of the U.S. taking a stake the administration could encourage customers to use the company’s capacity. However, a straight equity-for-cash swap does not seem favorable to Intel, and “funding a build-out with no customers probably won’t end well for shareholders,” contends Bernstein. It keeps a Market Perform rating on Intel with a $21 price target The stock closed Monday down 4% to $23.66 but is trading up 7% to $25.23 in the premarket following news of Softbank’s $2B stake.
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