Intel stood out in the technology sector in 2024, amidst widespread layoffs across the industry. Despite some job cuts in other areas, the company did not feature on the layoff list. In fact, Intel saw its highest single-year hiring count in at least the last 20 years, with 600 new hires in 2023. The majority of these hires were in New Mexico, where Intel opened its Fab 9 operation, indicating a focus on staffing the new facility. The company lost around $300 million to local companies, likely due to the expenses related to the Fab 9 opening.
While Intel managed to avoid layoffs, it received a slight snub from Microsoft, as the tech giant revealed that its new surface tablets would rely heavily on Qualcomm Snapdragon processors instead of Intel processors. This decision was attributed to the level of performance of Intel processors not being quite ready for the required standards, although progress is being made in that direction.
Wall Street analysts have a Hold consensus rating on INTC stock, with three Buys, 26 Holds, and three Sells assigned in the past three months. Despite a 7.2% rebound in its share price over the past year, the average target price for Intel stock is $37.87 per share, indicating a potential upside of 21.44%.
When considering Intel as a stock for passive income, investors are advised to exercise caution. The TipRanks team has a Smart Dividend Stock Portfolio that does not include Intel. The portfolio focuses on companies selected for their potential to generate significant passive income in the future.
In summary, Intel has been able to maintain its hiring momentum in the face of industry layoffs, but faces challenges with competition, as evidenced by Microsoft’s decision to use Qualcomm processors over Intel in its surface tablets. Investors are advised to proceed with caution when considering Intel for passive income, as there are other options available in the market that may offer better potential for passive income generation.
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https://www.tipranks.com/news/intels-nasdaqintc-2023-was-packed-with-hiring
