Good news for chip stock Intel (NASDAQ:INTC) and its shareholders. The ongoing legal fight in the European Union over antitrust issues may be bending in Intel’s direction, and that little sliver of hope was enough to send Intel up fractionally in Thursday afternoon’s trading.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
The hope in question came as an adviser to the European Union’s top court expressed the belief that the original economic analysis that prompted a demand for a $1.2 billion fine was inherently faulty. The case goes back to 2009 when Intel landed a fine for offering rebates to several computer makers to use Intel products instead of those of rival Advanced Micro Devices (NASDAQ:AMD). Regulators are opposed to rebates, considering them anti-competitive.
Yet companies believe that regulators need to prove that case before delivering sanctions over what amounts to price cutting. Meanwhile, the word from CJEU Advocate General Laila Medina came in on Intel’s side on the matter and may leave the courts back at square one.
More than Legal Matters at Stake
Meanwhile, out of the courtroom, Intel is also driving gains in another way. Starting February 21, Intel will roll out the first annual “flagship foundry event.” The event will bring both news and keynote speeches discussing Intel’s chip foundry role as well as its aspirations in AI. Hopefully, the information contained therein will drive interest and investment. If the information is sufficiently inspirational, it likely will, so it’s a safe bet that Intel has been keeping a few special bits specifically for this event.
What is the Fair Value of Intel Stock?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on eight Buys, 19 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 67.66% rally in its share price over the past year, the average INTC price target of $45.61 per share implies 1.61% downside risk.
