Intel ( (INTC) ) has been popular among investors this week. Here is a recap of the key news on this stock.
Intel is currently navigating a challenging landscape as it considers outsourcing some of its two-nanometer chip production to Taiwan Semiconductor, despite having its own in-house capabilities. This move has raised eyebrows among analysts and investors, leading to a significant 7% drop in Intel’s stock price. The decision to outsource is seen as a lack of confidence in Intel’s own production capabilities, especially as the company is still ramping up its 18A process to meet both internal and external demands.
In addition to production concerns, Intel is undergoing significant internal changes under the leadership of new CEO Lip-Bu Tan. The company has implemented a 20% workforce reduction and canceled the planned spinoff of Intel Capital. Furthermore, Intel has introduced a Return to Office mandate, requiring employees to work from the office at least four days a week. Analysts remain cautious, with a consensus Hold rating on Intel’s stock, reflecting uncertainty about the company’s strategic direction and future performance.