Intel Foundry Day Takeaway: Revenue Scale Is 'Several Years' Away, Analysts Say
Portfolio Pulse from Surbhi Jain
Intel (NASDAQ:INTC) has seen a 70% increase in stock price over the past year but has dropped 14% in 2024. The company launched the world's first AI-focused systems foundry, announced a significant design win with Microsoft for the 18A process, and revealed collaborations with Synopsys (NASDAQ:SNPS), Cadence (NASDAQ:CDNS), Siemens, and Ansys (NASDAQ:ANSS). JPMorgan analyst Harlan Sur maintains an Underweight rating on INTC with a $37 price target, citing that revenue scale from the foundry is several years away despite technological advancements and strategic partnerships.
February 23, 2024 | 8:28 pm
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Intel's stock has risen significantly but faces a recent downturn. The launch of an AI-focused foundry and partnerships, including a major deal with Microsoft, highlight strategic moves. However, JPMorgan's analysis suggests revenue scale from these initiatives is years away.
Intel's strategic initiatives and partnerships indicate potential for long-term growth, but the analyst's view that revenue scale is years away tempers short-term expectations. The stock's recent performance reflects this cautious optimism.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Ansys announced support for Intel's AI-focused foundry with validated tools and IP, indicating a collaborative effort to advance AI chip design.
Ansys' announcement to support Intel's AI-focused foundry with validated tools and IP portfolios suggests a positive impact on its business, leveraging Intel's foundry capabilities to enhance its offerings in the AI space.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Cadence collaborates with Intel to facilitate customer designs for the AI era, indicating a strategic partnership to leverage Intel's foundry capabilities.
Cadence's partnership with Intel to facilitate customer designs for AI applications suggests a beneficial relationship, potentially boosting Cadence's relevance in AI chip design.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Synopsys announced validated tools and IP portfolios to support Intel's AI-focused foundry, indicating a collaborative effort to advance AI chip design.
Synopsys' collaboration with Intel on AI chip design tools and IP portfolios suggests a positive impact on its business, leveraging Intel's foundry capabilities to enhance its offerings in the AI space.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70