The German government had agreed to subsidies worth about 10 billion euros for semiconductor giant Intel’s (NASDAQ:INTC) plans to set up chip manufacturing plants in the country. Now, the company may potentially lose these subsidies after an adverse court ruling on finances in the country, according to Reuters.
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According to the report, Sven Schulze, the Economy Minister in Saxony-Anhalt, where Intel’s plants are planned, noted that the unfavorable court ruling could lead to economic damage and impact the country’s image.
Earlier this year, Intel signed a revised letter of intent (LOI) with the German government amid its plans to pour billions of dollars into European manufacturing over the next few years. However, a subsequent Wall Street Journal report indicated that the company was facing an uphill task in its hiring process amid worker shortages. Higher energy costs in Germany could also be a hiccup for the company.
What is the Target Price for Intel Stock?
Overall, the Street has a Hold consensus rating on Intel. Following a massive 52% rally in the company’s share price over the past year, the average INTC price target of $37.39 implies a potential downside of 15.2% for the stock.
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