Intel Stock Rises As Amazon, Feds Throw Lifelines To Troubled Chipmaker

[mahatmakanejeeves]

Intel Stock Rises As Amazon, Feds Throw Lifelines To Troubled Chipmaker

PATRICK SEITZ | 10:52 AM ET 09/17/2024

Intel (INTC) stock rose on Tuesday after the beleaguered chipmaker announced funding from the U.S. government and an alliance with Amazon Web Services. Intel also announced moves to shore up its operations, including establishing an independent subsidiary for its foundry business.

The actions were generally well received on Wall Street, but most analysts still recommend staying clear of Intel stock. Of 45 analysts who cover Intel stock, three have buy ratings, 36 have hold ratings and six have sell ratings, according to Wall Street Journal data.

Late Monday, Intel Chief Executive Pat Gelsinger sent a message to employees announcing "the next phase of Intel's transformation." ... He said the move to make Intel Foundry an independent subsidiary will provide a "clearer separation" for customers and suppliers. It also will allow the business to "evaluate independent sources of funding."

Meanwhile, Intel is pausing plans to build manufacturing plants in Poland and Germany by about two years. The company also intends to reduce or exit about two-thirds of its real estate holdings by the end of the year. Those actions follow cost-reduction plans that Intel announced on Aug. 1. ... Plus, Intel plans to sell a stake in its Altera unit, ahead of an eventual initial public offering, Gelsinger said.

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[bucolic_frolic]

1. Waiting for Kramer's sell signal

That's the bullish indicator i need.