While some question whether or not a buyout of chip stock Intel (INTC) will ever actually see the light of day, there are other reports that say Intel may be on the cusp of a major win. Investors, however, are skeptical, and shares slipped fractionally in Thursday afternoon’s trading.
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Intel’s 18A process has been the topic of discussion and speculation for some time now, but now, new reports are suggesting it is working out in a big way. In fact, new reports suggest that 18A is producing SRAM density on par with the N2 process at Taiwan Semiconductor (TSM). That represents a major breakthrough, and should give Intel a real leg up going forward.
One of the biggest achievements in the 18A process, reports note, is the use of Backside Power Delivery (BSPDN), which, as the name suggests, moves power delivery functions to the back side of a wafer. That is an industry first, and is offering not only better efficiency in power, but also improvements in signal integrity, making for better overall product. That is just the news Intel will need to keep the market interested in its chip line.
Altera Buyers
But 18A can only do so much so soon, and Intel is still likely hurting for cash. To that end, it is currently in talks with Silver Lake about selling off the stake in Altera. While there have been other buyers involved, expressing interest, Silver Lake is currently Intel’s first choice.
Given that Silver Lake already has something of a reputation for reviving businesses—it already did that job nicely with Dell Technologies (DELL)—the notion of Silver Lake getting into the Altera business made a particular sense. Neither Silver Lake nor Intel, however, would comment, suggesting that the deal may be a ways off in coming, if it ever arrives to begin with.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 27 Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 40.77% loss in its share price over the past year, the average INTC price target of $22.67 per share implies 11.79% downside risk.
