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Intel (INTC) is in focus on Friday after its chief executive said he has recently met with C.C. Wei of Taiwan Semiconductor Manufacturing (TSM) to “find areas we can collaborate and create a win-win situation.”
Intel’s Lip-Bu Tan made the revelation on the earnings call last night, adding the chipmaker sees TSMC as a “partner.”
Tan’s update arrives after weeks of rumors that Intel and the Taiwanese giant are considering a joint venture, which may rescue the former’s foundry business.
At writing, Intel stock is trading more than 25% below its year-to-date high in mid-February.
Why Is Intel Stock Down on Friday?
Intel shares are down about 7.5% at writing even though the semiconductor company reported better-than-expected financials for its Q1 on Thursday, April 24.
Investors are responding primarily to INTC’s second-quarter guidance that came in miles below experts’ forecast.
On the earnings call, David Zinsner, the company’s chief of finance, attributed disappointing outlook to macroeconomic uncertainty, adding President Donald Trump’s trade policies, retaliation from other nations, and regulatory risks “have increased the chance of an economic slowdown” in 2025.
How to Play INTC Shares After Q1 Earnings?
Following Intel’s Q1 earnings release, Morgan Stanley analyst Joseph Moore reiterated his “Equal Weight” rating on INTC shares, acknowledging that the CEO transition will take time to yield results.
However, the firm’s research note on Intel stock was not all negative. Moore agreed that Q1 was a good quarter for the chipmaker, adding the “conservatism” in its guidance “should be welcomed” as it signals awareness of tariff uncertainty.
According to Morgan Stanley, it’s better to underpromise and overdeliver than overpromise and underdeliver. Note that the investment firm continues to see upside in INTC shares to $23.
What Wall Street Expects from Intel in 2025
Wall Street at large does not recommend bailing on Intel shares entirely in 2025.
While the consensus rating on the semiconductor stock currently sits at “Hold” only, the mean target of nearly $24 indicates about a 20% upside from current levels.
