Chip stock Intel (INTC) knows that its primary product, chips, is in huge demand right now. The demand is almost frightening in its intensity, and Intel has been rising to meet the challenge. Equipment orders spiked over the last three months, but this is not proving helpful to investors. Investors sent Intel shares plunging over 4% in Monday afternoon’s trading.
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Intel has been buying new chipmaking equipment hand over fist, reports noted, with volumes up 50% against this time last year. This stands to benefit multiple companies downstream, including E&R Engineering, where Intel gets its laser processing and plasma-related tools, along with its Raman inspection. KINIK Company’s diamond discs are also a big part of Intel’s operation, reports note.
Naturally, all these tools need to make chips, and all these chips need to go somewhere. We have already heard that several major companies are looking into doing business with Intel, thanks to Intel’s 14A process. Throw in Intel’s EMIB and advanced packaging systems and Intel suddenly looks like a powerhouse in the field.
Computex Reveal?
This is good news for Intel, and so is another recent development. Reports suggest that Intel could have plans to reveal its Arc G3 and Arc G3 Extreme chips at the upcoming Computex 2026 show. The Arc G3 and Arc G3 Extreme chips both have a key feature to them: they are particularly useful for handheld gaming devices, which might make them particularly useful at Computex.
Reports suggest the chips have been tested, and are ready to go. New partners are on hand, ready to fit the chips in their devices. Computex kicks off June 2 in Taipei, Taiwan, so we likely will not have long to wait to find out if Intel has a new powerful chip in its arsenal.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on six Buys, 23 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 263.59% rally in its share price over the past year, the average INTC price target of $54.75 per share implies 16.79% downside risk.
