Yesterday, we pointed out that chip stock Intel (INTC) is on a roll. It turns out that it is on an even bigger roll than we may have thought at first. In fact, recently, Intel stock hit prices not seen since the turn of the millennium, all the way back in 2000. Investors today, meanwhile, took some profit, sending shares down fractionally in Friday afternoon’s trading.
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Friday’s trading briefly saw Intel shares hit the highest intraday level in 26 years. Shares managed to hit $69.55 at one point, which was actually just a bit higher than the peak from January 24, 2020. In fact, reports note, Intel is less than 10% short of beating its all-time high of $74.88 per share, a figure set back in August of 2000.
The reasons for this are surprisingly broad. Gabelli Funds analyst Ryuta Makino noted that there were several “…near-term catalysts,” starting with a customer for the foundry business likely announced before the year is out. Throw in the recent agreement to buy back half a plant in Ireland, the deal to work on Terafab, and several others joining in, and suddenly Intel looks like a very attractive prospect.
New Guy at Foundry Services
Meanwhile, Intel has a new hire to take over as the head of Foundry Services. Intel tapped Shawn “Seung Hoon” Han to serve as senior vice president and general manager of Foundry Services. Han will primarily work with external customers, reports note.
This is actually good news for all concerned; Han previously served a similar role with Samsung (SSNLF), and has been involved with contract chipmaking for decades. So the idea that he will be able to do something similar for Intel makes sense. He may even be able to bring some business directly from Samsung to Intel, depending on any contracts that may be outstanding.
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 263.59% rally in its share price over the past year, the average INTC price target of $53.72 per share implies 20.98% downside risk.
