Wed Mar 12 20:20:00 UTC 2025: ## Chip Glut and Chinese Breakthrough Threaten Intel’s Future

**New York, NY –** Intel (INTC) is facing a double whammy: a potential chip oversupply and a groundbreaking technological advancement from China. Citi analyst Christopher Danely suggests the market may be saturated with chips, with production outpacing demand, particularly in the PC sector. While PC unit shipments are projected to increase slightly in 2025, the significant growth in chip production during the second half of 2024 (double digits) compared to PC sales growth (mid-single digits) raises concerns about inventory build-up. This concern, however, is still considered early-stage, and Danely maintains a Neutral rating on Intel stock.

Adding to Intel’s challenges, a new report highlights a silicon-free 2D transistor chip developed at Peking University. This bismuth-based chip reportedly outperforms Intel’s latest three-nanometer silicon chip by 40% in speed while consuming 10% less energy. While the veracity of these claims remains to be seen – reminiscent of the overhyped DeepSeek AI – the potential disruption to the semiconductor industry is undeniable.

Wall Street currently holds a “Hold” consensus rating on INTC stock, with a projected 14.19% upside potential based on an average price target of $22.69. The stock has experienced a significant 55.75% drop over the past year. The emergence of this potentially game-changing Chinese technology further complicates Intel’s outlook and adds pressure on its already challenged position.

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