Intel (INTC:NSD) has announced its intention to divest a significant portion of its investment in Mobileye Global (MBLY:NSD), a leading self-driving technology company. The sale of approximately 35 million shares, valued at around $1.5 billion, would result in a slight decrease in Intel’s voting stake in Mobileye from 99.3% to approximately 98.7%. The proceeds from the stake sale will be used to support Intel’s ambitious growth plans, aimed at increasing production levels and addressing challenges in the market.
Intel’s Growth Strategy and Plans:
In response to declining revenues and market share losses to competitors like Advanced Micro Devices (AMD:NSD), Intel CEO Patrick Gelsinger unveiled a comprehensive growth plan in early 2022. The plan involves introducing five new advanced manufacturing nodes between 2021 and 2025. During the recent fiscal first-quarter results announcement, Gelsinger reassured investors that Intel is making progress according to plan and remains committed to achieving its growth objectives.
Intel Stock Forecast:
Analysts‘ opinions on Intel stock forecast are varied, with four recommending a Buy, 16 suggesting a Hold, and four giving a Sell rating. The consensus among top analysts is to hold the stock, with a 12-month price target of $30.90, implying a potential upside of 3.5%. These analysts have a track record of providing valuable recommendations, and their views are worth considering for investors.
The Takeaway:
Intel’s decision to sell a portion of its stake in Mobileye to raise funds for its growth strategy reflects the company’s commitment to adapting and overcoming market challenges. The sale will provide financial support to execute Intel’s plans for increased production and technological advancements. As analysts offer mixed opinions on Intel stock forecast, investors should closely monitor the company’s progress and consider the insights provided by top analysts when making investment decisions.
