How Securing a Major AI Client for 18A Chips At Intel (INTC) Has Changed Its Investment Story
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Industry sources reported in the past week that Intel’s foundry division has secured a significant artificial intelligence client, likely Microsoft, for its advanced 18A/AP chip manufacturing process, marking important progress for the company’s external customer strategy.
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This development signals that Intel is gaining traction in advanced chip manufacturing for AI applications, highlighting a tangible step forward in its efforts to compete with established players in the semiconductor industry.
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We’ll explore how landing a major AI client for 18A/AP manufacturing might bolster Intel’s turnaround prospects and its foundry ambitions.
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To own Intel stock today, you need to believe the company can leverage breakthroughs in AI chip manufacturing to regain competitiveness and capture new growth, especially as it secures large external customers for its foundry division. While the recent reported foundry win signals progress, the biggest near-term catalyst for investors remains clear execution of Intel’s AI product roadmap, while the main risk lies in whether its AI and foundry execution can outpace organizational complexity and ongoing financial strain. This latest customer news is encouraging but likely not decisive for either factor just yet.
One relevant recent announcement is Intel’s unveiling of the Panther Lake processors, built on its advanced 18A process, the same process reportedly chosen by a top AI client. Panther Lake’s launch timeline and technology improvements might reflect the step-change that external customers are seeking from Intel, adding context to why securing new AI customers could matter for future revenue and margins. This link between product advances and foundry traction will be closely watched in the quarters ahead.
In contrast, investors should also be aware that while the foundry news looks promising, significant challenges remain around…
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Intel’s outlook anticipates $58.1 billion in revenue and $5.2 billion in earnings by 2028. This projection involves a 3.1% annual revenue growth rate and a $25.7 billion increase in earnings from the current $-20.5 billion.
Uncover how Intel’s forecasts yield a $25.95 fair value, a 30% downside to its current price.
Some of the most optimistic analysts expected Intel’s revenues to reach US$62.1 billion and earnings to turn positive by 2028, largely hinging on AI and advanced manufacturing gains. Compared to consensus risks, these forecasts assume Intel can sidestep persistent process delays and heavy capital needs. The recent news may shift both bullish and more conservative views, so it’s important to see how your expectations stack up against these different scenarios.
