Chipmaker Intel (INTC) has been on the ropes for a while, but there are some signs it may be planning to fight back. In fact, a look at the balance sheet suggests that there could be something truly impressive brewing and it is all about a key asset.
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The newest reports look at one number on Intel’s balance sheet: Property, Plant and Equipment (PP&E). For the last three years, Intel’s spending on PP&E has been lower than that of one of its biggest competitors in the foundry space: Taiwan Semiconductor Manufacturing (TSM). But this year, those rankings actually shifted position, and Intel has taken back the PP&E crown that it previously held.
This by itself is reason enough to take notice. Intel did this at a time when its revenues were in decline. And, it is also worth considering that Intel is actively using Taiwan Semiconductor to make several of its own chips, including the Lunar Lake and Arrow Lake lines. Thus, we may see something big come out in 2025, as Intel puts all that new PP&E to work.
CHIPS Money Waiting
Meanwhile, other events are occurring in the background. For instance, Taiwan Semiconductor is in line for a $6.6 billion award to be handed over before president-elect Donald Trump takes office. Meanwhile, Intel continues to wait for its share of that money to arrive.
However, one fund seems to be particularly behind Intel. Empowered Funds recently upped its stake in Intel by 21%. The total value of the Intel holdings in Empowered are now worth $10.67 million. They were not alone here as America First Investment Advisors LLC and Spartan Fund Management are other funds that bought in on Intel, leading to institutional investors holding about 64.53% of INTC stock.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 22 Holds and seven Sells assigned in the past three months, as indicated by the graphic below. After a 42.92% loss in its share price over the past year, the average INTC price target of $24.43 per share implies 0.73% downside risk.
