Intel shares fall for a fourth straight session on Tuesday, tech giant negotiating the purchase of Habana Labs, an Israeli AI startup

According to a report by Globes on Tuesday, Intel Corp (INTC) is in advanced talks over a potential acquisition of Israeli AI firm Habana Labs, valued at approximately $1 billion.

Intel shares closed lower for a fourth consecutive trading session on NASDAQ on Tuesday. It has also been the steepest daily loss since August 23rd. The stock went down 2.76% ($1.59) to $56.07, after touching an intraday low at $55.81, or a price level not seen since November 1st ($55.62).

Shares of Intel Corporation have risen 19.48% so far in 2019 compared with a 23.39% gain for the benchmark index, S&P 500 (SPX).

In 2018, Intel’s stock went up 1.67%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

In June, Habana Labs said it had launched “Gaudi”, an AI Training Processor for data centers, which is capable of increasing throughput up to four times compared to systems built with equivalent number of graphics processing units.

Established in 2016, Habana Labs has operations in Beijing, Tel Aviv, San Jose, Caesarea and Gdansk.

Analyst stock price forecast and recommendation

According to CNN Money, the 32 analysts, offering 12-month forecasts regarding Intel Corporation’s stock price, have a median target of $60.00, with a high estimate of $75.00 and a low estimate of $38.00. The median estimate represents a 7.01% upside compared to the closing price of $56.07 on December 3rd.

The same media also reported that at least 17 out of 42 surveyed investment analysts had rated Intel Corporation’s stock as “Hold”, while 13 – as “Buy”. On the other hand, 7 analysts had recommended selling the stock.