Intel INTC stock has soared nearly 70% in the last year. However, in 2024, the stock has experienced a 14% downturn. Recent buzz surrounding Intel revolves around its groundbreaking systems foundry tailored for the AI era.
The company recently showcased its roadmap with the 14A process technology, specialized node developments, and the Intel Foundry Advanced System Assembly and Test (ASAT) capabilities to aid customers in realizing their AI visions.
A major achievement was unveiled when Microsoft CEO Satya Nadella announced the selection of a chip design to be manufactured using the Intel 18A process.
Additionally, key partners such as Synopsys SNPS, Cadence CDNS, Siemens, and Ansys ANSS have come forward with validated tools and IP portfolios to support customer designs.
The Intel Analyst: JPMorgan’s analyst, Harlan Sur, maintains an Underweight rating on the stock with a year-end price target of $37. Assessing the Intel Foundry news, Sur evaluates its impact on the business and stock.
The Intel Thesis: Sur praises Intel Foundry’s effective execution, delivering five nodes in four years and launching Clearwater Forest processors on the 18A node. The introduction of the 14A process technology extends the roadmap through 2027, showcasing a commitment to advancement.
Intel Foundry’s deal value has expanded to $15 billion, backed by securing Microsoft as a significant client for the 18A node. The undisclosed long-term agreements hint at a stable revenue stream and robust growth.
Despite Foundry’s strides, building customer and revenue scale will be a gradual process, according to Sur. Foundry’s pivot beyond chip manufacturing to a comprehensive systems solution for AI requirements is a strategic leap, aligning Intel for competitiveness.
Additionally, Sur highlights Foundry’s technological edge, including early adoption of backside power delivery and GAA transistors in the 18A and 20A nodes. Collaborations with UMC and Tower Semiconductor for mature-node 65nm chips bolster Intel’s competitive stance, per Sur.
INTC Price Action: At present, Intel stock is trading at $43.15.
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