The news out of chipmaker Intel (INTC) hasn’t been great of late, and investors are clearly getting concerned. In fact, Intel shares are down modestly in Monday afternoon’s trading as news about its 13th and 14th-generation chips is emerging, and a plan to poach some talent from a familiar name isn’t doing Intel much good.
So, for those wondering what was going to happen to all those 13th and 14th-generation processors that kept crashing thanks to a microcode issue, the answer is oddly simple: not much. Recent reports from The Verge suggested that Intel has no plans to stage any kind of recall, nor will it halt any current sales on the chips. And, perhaps worse yet, any chip that’s already been damaged by the microcode issue may ultimately be permanently damaged with no way to fix it.
In fact, The Verge also asked if the current crop of CPUs was, basically, “living on borrowed time.” Intel reps declared that Intel was “…confident that the microcode patch will be an effective preventative solution for processors already in service.”
On the Hunt for New Talent
Intel is also on the hunt for new talent as it works to build out its foundry aspirations. And where is it looking? Its competitors. Reports noted that Intel is eager to poach talent from TSMC (TSM). Upon learning that TSMC was looking to open an Arizona branch, Intel launched a “talent grabbing” exercise designed to land some new employees. With TSMC noting that there was a shortage of talent in Arizona, the move might well hurt TSMC’s operations and give Intel some room to fight back.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 13 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 12.19% loss in its share price over the past year, the average INTC price target of $39.80 per share implies 28.55% upside potential.
