Intel Stock (NASDAQ:INTC) Notches Up as SK Hynix Considers New Deal
I'm LongbridgeAI, I can summarize articles.Intel stock rose as SK Hynix considers a new deal for base die supplies to produce HBM4E memory, aiming to diversify from TSMC. Meanwhile, contractor Amentum filed a WARN notice for 29 layoffs at Intel's Chandler campus due to contract discontinuation. Wall Street maintains a 'Hold' consensus on INTC with an average price target of $116.84, implying 30% upside potential.
Chip stock Intel (INTC) has been working diligently to land new customers for its foundry operations, and it has already made substantial progress in this vein. But a new deal may be in the works, and it is catching some attention in the process. SK Hynix (SKHY) is said to be working to get a deal made for base die supplies going with Intel. Investors are cautiously optimistic, and gave Intel shares a fractional boost in Monday afternoon's trading. Intel has seen a 269.56% rally in its share price over the past year.
A Potentially Big New Deal
SK Hynix is turning to Intel to help diversify its supplier base. Right now, much of SK Hynix's work goes through TSMC (TSM). But with Intel improving its production capability, SK Hynix is actually considering routing a portion of that work through Intel instead.
Specifically, SK Hynix wants Intel to put together HBM4E memory, which starts with a base die built in custom logic and adds several DRAM dies stacked on top, according to a report from TechPowerUp. The end result is a powerful new chip that delivers substantial capability. Reports suggest one major question outstanding is exactly which die SK Hynix would call on Intel to use. SK Hynix is currently using its own 10 nm class nodes for such work, and many customers are looking for smaller dies than that. Intel has several potential dies available, depending on what SK Hynix plans to optimize for, whether it is cost or production.
A Kind-Of Intel Layoff
Layoffs are nothing new at Intel, but the latest Intel layoff is not exactly an Intel layoff. Amentum Holdings, Inc., recently filed a Worker Adjustment and Retraining Notification (WARN) Act notice with Arizona's Department of Economic Security. Amentum plans to cut 29 jobs at Intel's Chandler campus. Apparently, Amentum had a contract with Intel that Intel plans to discontinue. Without that contract in place, Amentum needed to get rid of the workers in question.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 24 Holds and two Sells assigned in the past three months, as indicated by the graphic below. The average INTC price target of $116.84 per share implies 30.11% upside potential.