Intel shares slip as chipmaker taps brakes on new German plant

Intel (NASDAQ: INTC) shares slipped by 1% as investors reacted to weekend reports that the semiconductor giant is delaying plans to build a new plant in Germany unless it gets more subsidies from Berlin.

Intel (INTC) had originally set its eyes on opening the plant in the city of Magdeburg, in eastern Germany, in the first have of 2023. However, media reports in Germany said Intel (INTC) had put the brakes on its chip-plant expansion.

The German newspaper Worktime reported that Intel (INTC) informed governmental authorities that is needed more assistance due to rising energy and raw material costs. Intel (INTC) reportedly estimated the plant costing the equivalent of $18B, but now expected costs to surge to more than $21B.

Wall Street analysts have a consensus hold rating on Intel’s (INTC) stock, while Seeking Alpha authors give Intel’s (INTC) shares a rating of buy.

Meanwhile, Seeking Alpha’s Quant System, which historically outperforms the stock market, agrees with Wall Street analysts and gives Intel’s (INTC) stock a consensus hold rating.