'Major brake': UBS finds new driver for Intel stock after 14% rise

UBS found a new catalyst for Intel shares after they rose 14% in just two days. Such growth was provided by the company's decision to buy out a stake in a plant in Ireland. Even more important for investors may be the rejection of another partnership, which UBS analysts call "the main brake" for Intel.

Shares of processor maker Intel could get a new impetus to growth if the company gets rid of an unprofitable partnership with asset management company Brookfield Asset Management, with which they jointly own a chip factory in Arizona. That's the view of UBS analyst Timothy Arcuri, quoted by MarketWatch.

Intel has partnered with Brookfield under the Semiconductor Co-Investment Program (SCIP), under which the chipmaker brings in investor-partners to finance capacity expansions while retaining majority control, MarketWatch explained. However, this limits Intel's earnings growth, and specifically the Brookfield partnership has been a "major drag" on the company, the exit from which would benefit Intel, UBS said. It estimates that buying out the stake in the plant will cost Intel $20-30 billion, but the company is capable of finding those funds.

"The direction of travel here is very positive, and we see the SCIP exit with Brookfield as an even more important catalyst to reinforce the optimistic view on the stock," said Arcuri.

The UBS opinion comes shortly after Intel announced on April 1 that it was buying back a stake in its Fab 34 plant in Ireland from investment fund Apollo Global. This was a "very important first step" toward strengthening Intel's funding model, Arcuri said. The deal also demonstrates the company's financial strength and could have a positive effect on earnings, which could lead to an upward revision to forecasts, MarketWatch quoted D.A. Davidson managing director Jim Luria as saying.

After the announcement of the Apollo deal, Intel shares rose a combined 14.2% over two trading days - April 1 and 2. On April 3, stock exchanges in the U.S. are closed due to Good Friday.

Intel stock is now 36% more expensive than it was at the beginning of 2026. Despite this, analysts are mostly reserved in their assessment of the stock: 35 out of 50 gave them a Hold rating, another nine recommended buying (Buy and Overweight), and six recommended selling (Sell and Underweight).

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