Investing.com -- Bank of America analysts said Intel (NASDAQ: INTC) stock is likely to remain “range-bound until there is clarity around the company’s manufacturing progress, especially 18A process yields and external customer engagement/validation.”

The firm reiterated its Neutral rating and $25 price target on the stock.

In a note Thursday, the bank highlighted the recent media reports that suggest the U.S. government may convert its prior funding into a 10% non-voting equity stake in Intel.

BofA estimated the stake would be worth $11 billion, in line with the $10.9 billion in earlier support.

Analysts wrote that the “positive of such a move could be to promote INTC’s U.S.-based manufacturing as a way for new and existing fabless customers to expand their made-in-the-U.S. presence.”

Still, BofA warned of several drawbacks. A government stake could mean “10% dilution of existing common shareholders without any additional near-term benefits,” renewed pressure to restart construction projects like its Ohio fabs, and “likely higher scrutiny of/pushback from customers in China that accounted for ~29% of INTC total sales in FY24.”

The analysts were also cautious on other new investors. While Softbank’s $2 billion strategic investment signals interest through its Stargate initiative, BofA said it is “not a game-changer,” noting that Softbank (OTC: SFTBY) and its affiliates already engage with Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

Ultimately, BofA said Intel’s outlook “invariably comes down to its manufacturing competitiveness.”

The key questions remain whether Intel’s 18A process can deliver competitive yields, attract external customers, and provide a bridge to its next-generation 14A node.