Intel Outlines Future in Foundry and Process Leadership, Analyst Sees Steady Performance
Portfolio Pulse from Anusuya Lahiri
Intel Corp (NASDAQ:INTC) hosted Intel Foundry Direct Connect, where CEO Pat Gelsinger outlined the future of Intel, including the division into Intel Products and Intel Foundry. The event detailed updates to the Foundry services roadmap, including new business units, volume production updates, and partnerships. Notably, Intel is expanding its foundry services and has design wins with Microsoft Corp (NASDAQ:MSFT) and Arm Holdings Plc (NASDAQ:ARM) for SoCs. Additionally, Intel announced a partnership with United Microelectronics Corp (NYSE:UMC) for 12nm production. Despite these developments, Oppenheimer analyst Rick Schafer maintains a Perform rating on INTC, citing the company's ongoing efforts to achieve process leadership and foundry ambitions.
February 22, 2024 | 7:37 pm
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NEUTRAL IMPACT
Intel Corp shared updates on its Foundry services roadmap, including new business units and volume production updates. Despite these developments, Oppenheimer analyst Rick Schafer maintains a Perform rating on INTC.
Intel's announcement of its future plans and partnerships indicates a positive direction, but the analyst's Perform rating suggests a neutral short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Intel announced a foundry design win with Arm Holdings Plc (NASDAQ:ARM) for SoCs, showcasing a significant partnership in the semiconductor industry.
The collaboration between Intel and ARM for SoCs highlights a strategic partnership that could enhance ARM's offerings and market position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Intel highlighted foundry design wins with Microsoft Corp (NASDAQ:MSFT) for 18A and x86-rival Arm Holdings Plc (NASDAQ:ARM) for SoCs.
The design win with Intel for 18A could be seen as a positive development for Microsoft, potentially enhancing its product offerings and competitiveness.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Intel is expanding its presence in mature nodes through a 12nm partnership with United Microelectronics Corp (NYSE:UMC).
The partnership with Intel for 12nm production could be beneficial for UMC, potentially increasing its production volume and revenue.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60