Intel’s (INTC) recent moves to become a full foundry operation haven’t always gone well. But the latest move is likely going to help ensure that, at the very least, they keep going for the foreseeable future. In fact, Intel promoted Dr. Naga Chandrasekaran as its new leader of supply chain operations.
This makes him not only chief global operations officer but also executive vice president and general manager of Intel Foundry Manufacturing and Supply Chain. He formerly worked at Micron Technologies (MU), where he was senior vice president for technology development.
Chandrasekaran has over 20 years of experience manufacturing chips, which makes him well-placed to understand what Intel’s foundry operations will need and where there are potential growth opportunities. This should dovetail well into Intel’s overall plans to build a foundry system and grow its place in the chip ecosystem.
Nevertheless, investors weren’t enthused and sent shares down fractionally in Thursday afternoon’s trading.
Has the Worst Passed Yet for Intel?
Those who follow Intel know that its glory days are, well, kind of behind it. And while it’s attempting to turn things around, there are some who believe the worst has not yet passed. A bit of a rebound kicked in recently, but there are signs that several major concerns are reasserting their presence once more. Intel’s artificial intelligence (AI) operations are one of these concerns, as it’s been regarded as a laggard in the sector.
However, that’s been seen turning around thanks to things like AI Playground and its new push into the Olympics. And there’s certainly been some help from the potential return of President Donald Trump, with an America-first attitude that will likely benefit an American chip foundry. However, the numerous delays in getting chip factories off the ground are likely weighing on investors’ minds.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 22 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 6.61% loss in its share price over the past year, the average INTC price target of $38.10 per share implies 20.89% upside potential.
