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Intel (INTC), a major semiconductor company, ended the week with a disappointing outlook for its financial performance. The next catalyst for the stock could be only a few short days away.
Lip-Bu Tan will deliver the keynote address Tuesday at an event related to Intel’s Foundry, which manufactures chips for other companies. In a note published on Friday, Bank of America analysts said that the event could coincide with the announcement of new partnerships with other large tech firms.
Intel has tried to grow its Foundry division. In early 2013, it announced that it aimed to become the world’s second largest foundry after Taiwan Semiconductor Manufacturing Co. Its 2024 foundry revenue, however, fell from a year earlier—it came in north of $17 billion, roughly 30% of the company’s total—and its operating loss widened.
Earlier this year there were reports that Intel was considering selling a stake in its Foundry operation. TSMC, however has denied any discussions. Investors were aware that a sale or spin-off of Foundry was possible before Tan took the helm.
Investors continue to watch for signs of a deal. In recent months, optimism about a variety of possibilities, from a sale of a company to the entire business, has moved shares.
That could still happen. Tan has said that cost cutting is also a top priority. He did not officially announce layoffs reported earlier in the day, but made it clear on Thursday that they will be coming.
Bank of America analysts, who have a neutral rating for Intel's stock and a $23 price target that is a few cents above the Street consensus compiled by Visible Alpha, said Intel is “too big to turn around quickly, but optionality [is] “Still there”
The stock has lost over a third of its value in the past year through Friday's close.
