Remember four days ago, when we first heard about director Lip-Bu Tan departing Intel (INTC)? The chip stock was reportedly losing a board member because he had some other engagements that needed seeing to. However, it turns out that there was more than that going on, as the real reason for the departure was revealed. The news did little favor for Intel stock, as the chip maker is down fractionally in Tuesday afternoon’s trading.
The new reports noted that Tan left Intel after “differences with CEO Pat Gelsinger and other directors over what the director considered the U.S. company’s bloated workforce, risk-averse culture, and lagging artificial intelligence strategy,” noted a Reuters report.
Worse, as Intel’s workforce grew, its approach to contract manufacturing changed—Intel has been pushing toward foundry status for some time now—and its culture became increasingly bureaucratic. As a result, Tan eventually got fed up and left. Both Intel and Tan’s firm, Walden Catalyst, refused comment.
Intel Ramps Up Incentives for AI PC Partner Program
With this news came reports that Intel—despite doing just about everything in its power to build its liquidity—is also planning to ramp up incentives for its AI PC partner program. Reports note that Intel will offer “thousands of dollars” in market development cash to “develop compelling proofs of concept for AI PCs as part of its upcoming AI PC Innovation Challenge.”
With Intel cutting back on spending, focusing on its foundry operations, and battling several competitors, the firm is increasingly considering some kind of plan B. Intel’s cash burn rate is soaring, noted a Reuters report, and its share price is plunging. It needs a new plan, something that will get cash coming in the door and in short order. Will AI PCs do the job? Only time will tell.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 40% loss in its share price over the past year, the average INTC price target of $27.32 per share implies 38.26% upside potential.
![](https://blog.tipranks.com/wp-content/uploads/2024/08/image-782-1024x786.png)