Chip stock Intel (INTC) is on a roll, and picked up a huge gain today after introducing the new Intel Core Series 3 line of processors. Intel has high hopes for this new lineup, and given the state of the processor market today, it is a safe bet these hopes will not be dashed. Investors piled in, and sent shares rocketing up over 4.5% in Thursday afternoon’s trading.
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Trade NVDA with leverageThere is a lot to like about the Core Series 3 line of mobile processors, reports note, starting with high-end performance matched up by power-sipping systems that help ensure long battery life. Throw in the fact that these processors are apparently sufficient to handle some artificial intelligence (AI) applications and the potential value of these chips is substantial.
Intel general manager and vice president of the consumer PC, client computing group Josh Newman noted, “At a time when prices are rising and expectations are shifting, Intel Core Series 3 elevates value-orientated computing with exceptional battery life, boosted AI-ready performance, and broad ecosystem choice. By delivering the latest IP with modern, purpose designed silicon and right-sized performance, we’re expanding access to better technology that meets the real-world needs of students, families, small businesses, and edge deployments at a scale that no other company can match.”
Deals Incoming
One of the biggest issues facing the foundry division was whether or not it would find customers. Given how much Intel put into building out the foundry division, this could have been a serious problem. But Intel seems to be rapidly building the potential customer roster, and reports suggest several companies are on the verge of signing deals.
We know, of course, about Tesla (TSLA) and its Terafab system. But a host of other companies, ranging from Apple (AAPL) to Alphabet (GOOGL) to even immediate rivals like AMD (AMD) and Nvidia (NVDA) are all apparently in the process of making purchases from Intel. Several of these are apparently just waiting on the release of the 14A node, which was considered a “key catalyst” in multiple deals. That is a long way from where we once were, when some questioned if 14A would ever find buyers.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on six Buys, 24 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 243.05% rally in its share price over the past year, the average INTC price target of $53.72 per share implies 20.84% downside risk.
