In the tumultuous sea of Intel’s woes, a new storm has descended upon the tech giant. In an unprecedented move, the Anti-Defamation League has set its sights on a major American corporation with unsettling results. Intel, unfortunately, finds itself under the ADL’s scrutiny, leading to a palpable dip of about 3.5% in its shares during Friday’s early afternoon trading session.
A lawsuit, initially filed in August, centers around Intel’s handling–or rather mishandling–of allegations of “public antisemitism.” The alleged anti-semitic content was linked to the Israel-Hamas conflict. The complaint was raised by an Israeli employee who, following the incident, was reassigned to a position where they reported to the individual responsible for the offensive propaganda. Subsequently, the employee was terminated, prompting a legal response.
Stepping into the fray, the Anti-Defamation League contends that the employee was not merely discriminated against but sharply targeted and victimized. Intel, for its part, remains tight-lipped on the litigation but asserts its zero-tolerance stance against hate speech within its code of conduct.
The Shadow of Layoffs Looms
Despite the legal tussle, Intel’s workforce faces an additional specter–the looming threat of mass layoffs. Rumor has it that Intel is nearing the halfway mark of its massive 15,000-employee reduction target, with a deadline set for mid-October. The list of those on the chopping block has been allegedly finalized, leaving employees in suspense until the October deadline. However, those who survive this culling may find solace in Intel’s recent lucrative deals with the Pentagon and tech behemoth Amazon.
Evaluating Intel’s Position in the Market
Turning to the financial enclave of Wall Street, analysts have bestowed a Hold consensus rating on INTC shares, comprising one Buy, 26 Holds, and seven Sells over the last three months. Following a staggering 40.23% decrease in share value over the past year, the average price target for Intel stands at $25.47 per share, denoting a modest 7.81% upside potential for investors.
