Another round of good news emerged for chip stock Intel (INTC), who got a nice boost yesterday after making a new friend in vice president JD Vance. Now, it’s up nearly 6.5% once more on news that it may be working up a new joint venture with Taiwan Semiconductor Manufacturing (TSM).
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The word first came from Robert W. Baird via analyst Tristan Gerra, who noted that there were “…discussions from the Asia supply chain” about Intel and Taiwan Semiconductor getting together on a new project. Just what that project will look like, or ultimately do, is as yet unclear. However, the idea that it could go down at all is proving hopeful for investors.
Naturally, the reports are all still very early-stage, and may never actually materialize to begin with, let alone take on any coherent shape that might look like a project that could pull Intel’s collective fat out of the fire. But these reports also suggest that Intel might spin off its foundry business, and TSMC would get involved accordingly. That would make for a move that brings three- and two-nanometer chips to the United States, a big win all around.
Meanwhile In Ohio
The plan for Intel to build a major new chip operation in Ohio, meanwhile, is starting to look downright threatened, reports note. While new semiconductor tariffs are in the works, which would seem to be helpful for a domestic chip-building operation, other tariffs may actually hurt the plant’s construction.
Tariffs on steel and aluminum will certainly pose a problem for Intel’s construction plans, but potential oil and gas tariffs may be an issue as well. Ohio actually has substantial oil and gas reserves under its soil, which may impact Intel’s plans to build. The potential semiconductor tariff plans may be an issue as well; while large tariffs across the board could mean more jobs in the United States, uneven application might lead to chip makers simply moving to more nearby countries with more friendly terms instead.
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 five Sells assigned in the past three months, as indicated by the graphic below. After a 47.86% loss in its share price over the past year, the average INTC price target of $21.98 per share implies 1.21% downside risk.
