“Simple math,” is how chip stock Intel’s (INTC) CEO Lip-Bu Tan describes the process for layoffs hitting throughout the company’s operations worldwide. The state of Oregon, however, is starting to question if Intel has any real value left for the state as new layoffs may be hitting soon. The news was good enough for shareholders, though, as shares notched up fractionally in Thursday afternoon’s trading.
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Oregon actually went to great lengths to get Intel in and producing in the state, with Oregon, at one point, rewriting its entire tax code. For the most part, this proved helpful. But with Intel slashing jobs and crippling income taxes—which Oregon is reportedly “heavily reliant” on for several major government services—Oregon is starting to question Intel’s value.
And the questioning will likely continue. Intel is said to be considering still more layoffs in the state, which will further impact Oregon’s ability to obtain operating funds from a portion of workers’ paychecks. But with around 15,000 employees still in the state, and Tan still insisting, “Oregon will continue to play a critical role in Intel’s global operations…,” Oregon may be able to continue getting by, if only for now.
A Huge Possible Win in Gaming
Meanwhile, reports emerged about the Nova Lake line of chips, and the Nova Lake-AX line in particular. The AX line will be, reports note, above the H-series line, which means a serious powerhouse in the making and a potential big winner for PC gamers out there. In fact, reports also note that the AX line will not only boast 28 central processing unit (CPU) cores, but also 384 execution units on its graphics processing unit (GPU) architecture.
That would actually improve the AX line’s performance to exceed the second-generation Arc graphics cards, reports note, and give Intel a potential muscle machine to work with. This is, of course, early word, so anything could change about this ahead of release. But if Intel can bring this chip out and give it a reasonable price tag, Intel may have a way to pull back some lost market share, a development it sorely needs right now.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 34.93% loss in its share price over the past year, the average INTC price target of $21.60 per share implies 5.26% downside risk.
