Citi views the 7% rally in shares of Intel (INTC) yesterday after The Information reported TSMC (TSM) and Intel have tentatively agreed to form a joint venture as “the wrong move.” Citi does not believe TSMC operating a joint venture with Intel would work given differences in manufacturing and operations. It continues to believe Intel should exit the merchant foundry business and stick with manufacturing its own chips. The analyst reiterates a Neutral rating on the shares with a $21 price target.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on INTC:
- Intel’s Strategic Challenges: Hold Rating Amid TSMC Collaboration Skepticism
- Intel and TSMC Reach Tentative Deal for a Chipmaking Joint Venture
- Intel’s Strategic Uncertainty Amid Potential TSMC Collaboration and Valuation Challenges
- Intel up 7% after report of tentative agreement on chipmaking JV
- “You Deserve Better,” Says Lip-Bu Tan, and Intel Stock (NASDAQ:INTC) Sells Off to Go Find It