Intel Corporation (NASDAQ:INTC) shares are trading lower Wednesday following Tuesday's 7.7% drop. Intel's contract manufacturing business has been dealt a blow after tests on wafers for Broadcom, Inc. (NASDAQ:AVGO) reportedly failed.
The Details:
According to a Reuters report, the tests involved using Intel's 18A manufacturing process on silicon wafers which were sent back to Broadcom last month. Broadcom engineers then determined the manufacturing process had failed and was not yet ready to move to high-volume production.
"Intel 18A is powered on, healthy and yielding well, and we remain fully on track to begin high volume manufacturing next year," an Intel spokesperson said in a statement to Reuters.
"There is a great deal of interest in Intel 18A across the industry but, as a matter of policy, we do not comment on specific customer conversations."
Reuters reported Tuesday that Intel could be removed from the Dow Jones Industrial Average as the chipmaker's stock is the index's worst performer in 2024. The stock fell sharply at the beginning of August after reporting worse-than-expected second-quarter results and a $10 billion cost-cutting initiative. According to data from Benzinga Pro, Intel shares are down more than 60% year-to-date.
Will INTC Stock Go Up?
When trying to assess whether or not Intel will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $26.81 on Intel. The Street high target is currently at $42 and the Street low target is $17. Of all the analysts covering Intel, one has a positive rating, 11 have neutral ratings and 4 have negative ratings.
In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Intel have performed in recent history.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Intel is 60.46% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Intel, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.
INTC Price Action: According to Benzinga Pro, Intel Corporation shares are down 2.70% at $19.57 at the time of publication Wednesday.
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