Jul. 03, 2025 –
Intel is a well known semiconductor company that is shifting focus in its chip foundry business. According to UBS, Intel is stopping external sales of its 18A and 18AP chip nodes and will now focus on the more promising 14A node. UBS kept its Neutral rating on the stock with a price target of $21 saying this move fits with their earlier view of Intel’s foundry plans.
Intel’s 14A chip node is considered its first real foundry product and is the second version of its GAA + BS-PDN technology. UBS believes the 14A node has a wider process window and better design kits (PDKs), which could potentially attract more customers. This shift could help Intel grow its foundry business, even though the company may face some challenges in making the switch smoothly. Currently companies like Broadcom and NVIDIA have shown interest in the 18AP node. Intel’s choice to move away from it raises questions about how customers will respond but UBS sees potential in the long-term benefits of 14A.
Meanwhile, Intel is expected to return to profitability this year with annual revenue at $53.04 billion and a market value of $97.8 billion. Mizuho also kept a Neutral rating but raised its price target slightly to $23. Its earnings and revenue estimates for the June quarter remain unchanged at $11.8 billion and $0.00 per share which are slightly below market expectations. Mizuho also noted Intel’s efforts to cut costs and grow in the AI sector.
Intel is making other strategic moves as well. It is expanding its partnership with Nokia to improve 5G networks using Intel’s Xeon processors. It also made leadership changes naming Greg Ernst as its new chief revenue officer. In another highlight, Mobileye, once part of Intel, will supply radar tech for advanced driving systems to a major carmaker starting in 2028. All these moves show Intel is working hard to stay competitive in the fast-changing chip market. The shift to the 14A node is a key part of that effort even though it may take time to show full results...