Shares of chipmaker Intel (NASDAQ:INTC) are up fractionally in Tuesday afternoon’s trading despite being sued by Stoutbridge Investments, who filed a complaint known as 1:24-cv-00734 to address some key points about Intel management. The complaint alleges that Intel has made “materially false and misleading statements” about the value of its foundry operations since January and is looking for “reform of Intel’s corporate governance and internal procedures.”
Meanwhile, Intel’s foundry business is still rolling along. It recently offered more details about its plan to use a technology known as “dipole work-function metal” that allows chip designers to tune chips with a range of different “threshold voltages.” This should help give Intel an edge in foundry operations since it will be able to produce where others can’t.
Intel Could Win Out over Nvidia
There seems to be some sentiment merging to suggest that Intel could win out over Nvidia (NASDAQ:NVDA) thanks to its low valuation and potential for growth. Thomas Hayes of Great Hill Capital noted that Nvidia’s valuation was a lot higher and more likely to fall. Hayes further noted that while Intel “squandered its lead,” it was working to “turn it around.” Further, the Gaudi 3 chip was well on track to outpace Nvidia’s H100 on several fronts and make it a serious potential competitor.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 26 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 6.66% loss in its share price over the past year, the average INTC price target of $38.02 per share implies 24.07% upside potential.
