We have been following the controversy over chip stock Intel (INTC) hiring former Taiwan Semiconductor Manufacturing Company Limited. (TSM) executive Wei-Jen Lo for some time now. Not surprisingly, Taiwan Semiconductor has pulled the trigger on a lawsuit against Intel, alleging trade secret theft. But Intel shareholders did not balk. In fact, they gave Intel shares a fractional boost in Tuesday afternoon’s trading.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The suit alleges there is a “high probability” that Lo leaked sensitive information to Intel, despite the fact that Lo has not actually been employed at Taiwan Semiconductor since back in July. But Taiwan Semiconductor is instead using Lo’s employment contract along with some key government regulations like the Trade Secrets Act as the basis for its lawsuit.
Of course, Intel responded to this entire notion before the lawsuit was even a thing. “We respect IP,” Lip-Bu Tan, current CEO of Intel, made clear recently. The issue here seems to be that Taiwan Semiconductor will have a very difficult time proving that Lo has divulged anything, rather than simply aiding Intel in the independent creation process. After all, “high probability” is neither “certainty” nor “event that actually happened.”
Intel’s Surprising Restaurant Connection
That was when an even bigger surprise dropped for Intel, as it turns out that Intel has a connection to the restaurant industry. Specifically, DifiNative recently released TableWatch, a restaurant operations system that draws on artificial intelligence (AI), and uses Intel edge processing to carry out its tasks.
The restaurant industry is particularly challenging these days. Reports note that most restaurants rely on a “peak window” that lasts less than 25% of the total day but accounts for 60% to 70% of overall income. Thus, TableWatch steps in to help businesses make the most of that peak run. This tool helps rapidly identify available tables and alerts front-of-house staff, thus allowing for the quickest turnover and best use of available time.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 26 Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 48.81% rally in its share price over the past year, the average INTC price target of $35.61 per share implies 0.72% downside risk.
