Oppenheimer analyst Rick Schafer had a Perform rating on Intel Corp
The analyst noted Intel hosted Intel Foundry Direct Connect Wednesday, sharing details on management's rebranding and updates to the Foundry services roadmap.
CEO Pat Gelsinger highlighted two distinct business units, Intel Products, covering traditional product lines for clients, data center and networking, and Intel Foundry for internal/external fabrication services.
The analyst noted that Intel's success as a contract manufacturer is mainly limited to advanced packaging, as the company has yet to succeed in delivering five nodes in four years.
Intel 4 is shipping in volume, and Intel 3 will likely enter volume production in the first half. Clearwater Forest, taped out on Intel 18A, is planned to launch in 2025.
Management announced Intel 14A (1.4nm) and other extensions to the foundry roadmap, the analyst noted. Extensions include backfilling existing nodes with new enhancements such as Intel 3-T and Intel 3 optimized with through-silicon vias for 3D packaging.
Intel is also expanding its presence in mature nodes with its 12nm partnership with United Microelectronics Corp
Intel highlighted foundry design wins with Microsoft Corp
U.S. Secretary of Commerce Gina Raimondo made a virtual appearance, stressing the need for a holistic on-shore semiconductor industry. However, the hoped-for announcement of CHIPS Act funding did not materialize.
Schafer recognized Intel's efforts to achieve process leadership and foundry ambitions but believes the company remains in prove-it mode as multiyear turnaround efforts play out. He remained sidelined here.
Price Action: INTC shares traded lower by 0.57% at $43.22 on the last check Thursday.
