Some good news for microchip giant Intel (INTC). The company got a court win in the European Union (EU). Shares gained modestly on the news.
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Intel has been in a rolling battle with some of Europe’s biggest watchdog groups, who have been focused on Intel’s competitive ability in the region. Not long ago, Intel landed a billion-euro penalty from European watchdog groups, and promptly launched the appeals process. A lower court overturned that billion-euro penalty, and soon, Intel found its case at the European Union Court of Justice.
The Court of Justice then upheld the decision to annul that billion-euro fine, and dismissed the appeal from the European Commission. The court made it clear that it, “…rejects all of the grounds of appeal raised by the Commission,” and the case was shutdown.
How Intel Lost the AI Chip War
In other news, a report from The New York Times took a look at how Intel managed to lose one of the biggest chip wars that some may not have even realized it was fighting: the artificial intelligence (AI) chip boom. We know that this is where Nvidia (NVDA) managed to step in and win in a very big way, but how did Intel lose out?
The New York Times report goes all the way back to 2005, when then-CEO Paul Otellini had a chance to buy Nvidia for, potentially, $20 billion. The board was not having it, and Intel focused on other projects, including Larrabee, a hybrid GPU / CPU that could handle graphics and processing together. That did not pan out, and Intel found itself further and further behind in the AI chip market that had then only started.
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 seven Sells assigned in the past three months, as indicated by the graphic below. After a 31.06% loss in its share price over the past year, the average INTC price target of $25.34 per share implies 13.79% upside potential.
