We know that chip stock Intel (INTC) has been shaking up its organization for the last couple of months now. Plenty of people were fired outright, and some divisions may be up for sale as Intel works to recover from its terrible 2024. Throw in word about major market share losses and things could not look much worse. Now, however, Intel is looking to spin off its RealSense operations into a stand-alone company, a move that may prove a bit of help for Intel going forward.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Word from The Robot Report noted that, back in September, Intel rolled out the RealSense Depth Module D421, a depth camera that may have had some interesting applications for things like self-driving vehicles and other “computer vision” related tasks. But now, Intel is planning to take the D421, and the rest of RealSense, and spin it off into its own operation.
Intel looks to complete the process of making RealSense its own operation this year, likely in the first half, and RealSense will ultimately be a company under the Intel Capital operation. However, Intel also made clear that the decision to make RealSense its own operation has nothing to do with Intel’s recent round of financial troubles. Rather, it is part of Intel’s long-standing commitment to “…incubate…leading-edge, disruptive technologies and business to validate customer need and market acceptance.”
More Hope for 18A
A report from Forbes, meanwhile, stepped in to provide a little more hope for the 18A process, which has been facing some mixed reviews for some time now. This year will bring a “moment of truth” for the 18A process, as Intel has put quite a bit of investment into it. Should that investment ultimately fail, it could be a disaster for Intel.
However, the report also notes, 18A represents “the most advanced manufacturing technology yet” for Intel. With a 1.8 nanometer process node, RibbonFET gate-all-around transistors, and several other key features, it does indeed represent a significant advance forward for production at Intel. In fact, the report noted that 1.8 nanometer process is actually slightly smaller than TSMC’s (TSM) N2 process, as that only goes to two nanometers. That could ultimately set Intel apart and make it a winner.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 21 Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 57.56% loss in its share price over the past year, the average INTC price target of $24.53 per share implies 23.39% upside potential.
