UBS Maintains Neutral on Intel, $23 Price Target

UBS analyst Timothy Arcuri reiterated a Neutral rating and $23 price target on Intel (NASDAQ: INTC).

“INTC and TSMC have reportedly reached a preliminary agreement to form a JV that would see TSMC take a ~20% stake in INTC’s chip manufacturing operations – an arrangement that we have long advocated.

The reported JV looks and feels to us like the ASMC (American Semiconductor Manufacturing Corp) structure that we believe has been long discussed in Silicon Valley and we have written about in which other US customers would also take a stake.

According to press reports, TSMC’s 20% stake would be obtained via contribution of technology and personnel (versus capital investment), with INTC and other US companies (including potentially AAPL, NVDA, QCOM, and others) holding the majority of the shares in the proposed JV.

The collaboration aligns with the Trump Administration’s interest in boosting domestic semiconductor production as policymakers have encouraged partnerships to ensure more advanced chips are made in the US.

TSMC’s motivation for such an agreement (beyond potential geopolitical factors) is unclear to us, but this would infuse capital and operational know-how into INTC’s foundry efforts – potentially ultimately facilitating the separation of the foundry and product businesses that we have also written about.”

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