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Luke Kawa

Intel dives on report of potential manufacturing strategy shift that could cost billions

Intel is getting slammed today as investors react to a report from Reuters suggesting new CEO Lip-Bu Tan is mulling a substantial shift to its manufacturing business in a bid to compete with the likes of TSMC.

This would involve stepping away from external sales of chips using one manufacturing process in favor of another. Industry analysts cited by Reuters suggested it would result in a substantial write-off in the “hundreds of millions, if not billions, of dollars.”

Tan’s track record in turning around the financial performance of Cadence Design Systems, which helps chipmakers make chips, caused Wall Street to cheer his arrival at Intel.

It seems as though this potential tactic to bolster the beleaguered chipmaker is not being received as warmly, to put it mildly.

This would involve stepping away from external sales of chips using one manufacturing process in favor of another. Industry analysts cited by Reuters suggested it would result in a substantial write-off in the “hundreds of millions, if not billions, of dollars.”

Tan’s track record in turning around the financial performance of Cadence Design Systems, which helps chipmakers make chips, caused Wall Street to cheer his arrival at Intel.

It seems as though this potential tactic to bolster the beleaguered chipmaker is not being received as warmly, to put it mildly.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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