Intel's Slow-Burn Strategy: Foundry Revenues 'Not Till 2027,' Analyst Predicts Spin-Off Ahead
Portfolio Pulse from Surbhi Jain
Intel's long-term strategy involves a slow ramp-up of its foundry revenues, not expected until 2027. JPMorgan analyst Harlan Sur maintains an underweight rating with a price target of $26 by 2025. Intel is forming a new subsidiary for its Foundry business, potentially leading to a spin-off. The company is also collaborating with Amazon to produce AI fabric chips, which could benefit long-term growth.
September 17, 2024 | 1:48 pm
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Intel's foundry revenues are not expected to ramp up until 2027, according to JPMorgan. The company is forming a new subsidiary for its Foundry business, which could lead to a spin-off. Intel is also collaborating with Amazon on AI fabric chips.
Intel's long-term strategy involves a slow ramp-up of foundry revenues, which may not impact the stock price immediately. The formation of a new subsidiary for its Foundry business could lead to a spin-off, potentially unlocking value. Collaboration with Amazon on AI chips is a positive long-term development.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Intel is collaborating with Amazon to produce AI fabric chips, which could enhance Amazon's custom chip offerings and strengthen its cloud services.
The collaboration with Intel to produce AI fabric chips could enhance Amazon's custom chip offerings, potentially strengthening its cloud services and providing a competitive edge.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50