Intel Stock Could Keep Soaring as Deals Boost Confidence

Shares of Intel (NASDAQ: INTC) have soared more than 20% so far in August. The struggling chipmaker is still facing serious issues, with market share losses to AMD piling up and a lack of major customers for its semiconductor foundry business raising questions about the whole endeavor. The Intel 18A process is reportedly facing yield issues, and there were recently rumors that new Intel CEO Lip-Bu Tan was considering giving up on trying to win external foundry customers for Intel 18A and instead focusing on Intel 14A.While Intel's turnaround is plodding along, the value of the company's U.S. manufacturing assets is getting some attention. Japan's Softbank injected $2 billion into the company by buying equity earlier this week, and it reportedly discussed buying Intel's foundry business outright before striking that deal. The U.S. government is also on the cusp of getting involved, with the Trump administration reportedly discussing taking a 10% stake in Intel.The money will help, given the enormous capital requirements involved in building advanced semiconductor manufacturing facilities. But more important for Intel is that these deals could push chip designers toward giving Intel a chance as a manufacturer. If Intel can score even one major external foundry customer, this business will be put on a more viable path.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool