What's Going On With Intel Stock On Monday?

Intel Corp INTC has bypassed Vietnam for a substantial investment project, citing insufficient investment incentives. The stock is trading higher on Monday.

The U.S. chipmaker had proposed a $3.3 billion project and requested 15% “cash support” from the Vietnamese government.

However, the Vietnamese Ministry of Planning and Investment disclosed in a document dated June 29 that Intel later decided to relocate the project to Poland, according to Taipei Times reports.

Also Read: Intel and Japan’s Sharp Team Up to Innovate Chip Production, Cut Costs

The document revealed that LG Chem Ltd also decided against investing in Vietnam, choosing Indonesia for a battery project after asking the Vietnamese government to cover 30% of the investment cost.

The need for sufficient investment incentives has led many multinational corporations to explore opportunities elsewhere.

Vietnam, an essential manufacturing hub for major companies like Samsung Electronics Co, Foxconn Technology Group, and Intel, relies heavily on foreign investments for economic growth.

Intel stock also got a boost from Morgan Stanley, which joined a growing list of brokers, boosting their price targets on crucial contract chip maker Taiwan Semiconductor Manufacturing Co TSM. Taiwan Semiconductor is also a chip supplier for Intel. The Taiwan Semiconductor price target boosts reflect Wall Street analysts’ conviction on the continued artificial intelligence frenzy.

Analysts had flagged that Intel is facing a slow recovery in its PC and data center segments, with delayed server demand recovery as customers prioritize AI infrastructure over traditional servers.

They highlighted Intel’s competitive challenges, including maintaining market share against rivals like Nvidia Corp NVDA.

Price Action: INTC shares traded higher by 5.84% at $33.89 at the last check on Monday.

Also Read:

• Intel’s Strategic Moves Under Scrutiny, Analysts Weigh In on New Financial Structure and Market Share

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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