This was a pretty big week for chip stock Intel (INTC). We discovered how far Intel was going with its ambitions in quantum computing, which turned out to be not very far at all. Changing economics and the brass tacks of Intel's foundry moves also weighed on the stock. Investors seem mildly concerned about Intel's overall fate, as Intel dropped fractionally in Friday afternoon's trading. Intel has seen a 225.82% rally in its share price over the past year.

The Skeleton Quantum Crew

Intel revealed that it had 70 people working on quantum computing, a move that, at the time, sent Intel share prices slumping hard. Intel was working on "silicon spin qubits," which could represent a huge step forward for Intel, particularly if it could get those qubits made in Intel's current factories. Despite CEO Lip-Bu Tan noting that quantum was a part of Intel's plan for the next five to 10 years, the fact that it only had 70 people working on quantum left investors deeply concerned.

Competitors are Partners

Intel advanced a strange notion on Tuesday, revealing that it considered its competitors to be more like partners. Intel's CEO told a story about how closely connected to Nvidia (NVDA) he was, and how Nvidia stepped in to offer investment when Lip-Bu Tan was CEO of Cadence Design Systems (CDNS).

This was good enough for investors at the time, who gave Intel a slight boost in share prices. And indeed, considering how many of those competitors are making purchases from Intel on a regular basis—chances are not all of Nvidia's computers are AMD (AMD) powered—Intel's competitors are often customers as well.

Foundry Financing

Then, Intel found it may have had an issue with its foundry financing. It managed to find partners to help get it up and running—good news for Intel's cash on hand—but the partnership came with conditions that would prove tough for Intel. Agreements covering production rates and inventory rates mean that Intel will have to sell much of what it makes, and as quickly as possible.

A Shifting Picture

Finally, Intel's week wrapped up on an oddly speculative note, as Intel's financial picture went from one of survival to one of expansion. Intel's finances a few months ago were focused on keeping the company intact. Cost cuts, layoffs, reduced management and more all added up to money not spent.

Intel expanding its production lines comes at a time when Intel's market for chips is on the rise as well. This is about the best possible situation for Intel right now, especially given earlier reports that Intel needs to sell just about everything it produces as part of the terms of its recent partnership efforts.

Is Intel a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 22 Holds and two Sells assigned in the past three months, as indicated by the graphic below. The average INTC price target of $114.38 per share implies 4.58% downside risk.