We know that chip stock Intel (INTC) has been frantically, almost eagerly, cutting costs for months now. So hearing about plans to spend large amounts of money seem almost shocking in light of that. But that is what Intel has in mind, planning to spend just shy of $208 million on its operations in Malaysia. That actually sat well with investors, who gave Intel a fractional boost in Wednesday afternoon’s trading.
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More specifically, Intel will be putting the money into its assembly and testing operations in the country, based on a report from Malaysia’s prime minister Anwar Ibrahim. That in turn will give Malaysia a leg up when it comes to the worldwide semiconductor supply chain. Given that Malaysia is already responsible for somewhere around 13% of chip packaging, assembly and testing, giving Malaysia a little extra boost is likely to prove useful.
Intel put the cash into Malaysia, reports note, because Intel is confident in Malaysia’s ability to produce. And with an advanced packaging facility, valued at around $2.9 billion, already nearly completed, it is safe to say the confidence is not misplaced.
New Deals Turning Intel Around
We also know that one of Intel’s biggest problems over the last few years has been its faltering in the field of artificial intelligence (AI). But we also know that Intel has made a lot of comeback in the market regardless. This, reports note, is thanks in large part to several new deals in the field that make Intel look more attractive, as its market is much more secure than it was even a few months ago.
Multiple investors have stepped in, from the United States government to current competitors. And with signs that both 18A and 14A nodes will bear fruit going forward, the end result should be a positive one for Intel.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 25 Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 97.95% rally in its share price over the past year, the average INTC price target of $36.07 per share implies 16.95% downside risk.
