Intel Stock Falls as Foundry Customers Hold Back
Warning! GuruFocus has detected 7 Warning Signs with INTC.
Zinsner was quick to note that hitting break-even on the foundry side doesn't demand huge third-party ordersmid-single-digit billions in revenue should do itbut convincing external clients to trust Intel on IP protection and supply-chain security will take time.
Investors reacted by driving INTC down to $21.26 on May 14, off about 1.9%, while AMD and TSMC climbed 5.8% and 0.7%, respectively. Price targets are all over the mapfrom $14 to $28.30with an average of $21.30 and a GuruFocus value of $23.50.
On the leadership front, Zinsner had praise for new CEO Lip-Bu Tan's push to flatten the organization and get engineers back on the lab floor, closer to customer feedback. He hinted that this shift could turbo-charge Intel's AI roadmap by speeding up product cycles and tightening client collaboration.
Why it matters: If Intel can't drum up external foundry business soon, it risks lagging behind AMD and TSMC just as demand for advanced nodes heats up. Investors will be watching for that first big outside deal and any signs of momentum in Q2's guidance.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 hours ago
- Yahoo
Morgan Stanley: Intel (INTC) Next-Gen Foundry Faces 'Minimal' Hits
July 4 - Morgan Stanley said Intel's (NASDAQ:INTC) plan to shift its foundry focus from the 18?angstrom (18A) node to the more advanced 14?angstrom (14A) process would have limited impact in the near term, according to a Thursday investor note. Warning! GuruFocus has detected 7 Warning Signs with INTC. Analysts led by Joseph Moore argued that initial external foundry projects tend to be small scale and require minimal capital spending. Foundry breakeven has only modest dependence on external customers, the note said, suggesting Intel's path to profitability through fiscal 2026 remains largely unchanged. Moore's team acknowledged market frustration over Intel's slower progress but pointed out that the company still controls a significant share of client and server CPU markets. Morgan Stanley maintained an Equal?weight rating on INTC with a $23 price target, indicating neither a buy nor sell recommendation from current levels. Investors will watch whether the 14A pivot can boost Intel's competitiveness against Taiwan Semiconductor Manufacturing in securing clients such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA). The firm's cautious outlook underscores that, for now, Intel's foundry ambitions are unlikely to sway its financial trajectory. Based on the one year price targets offered by 32 analysts, the average target price for Intel Corp is $21.24 with a high estimate of $28.30 and a low estimate of $14.00. The average target implies a downside of -5.58% from the current price of $22.49. Based on GuruFocus estimates, the estimated GF Value for Intel Corp in one year is $23.86, suggesting a upside of +6.09% from the current price of $22.49. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- Yahoo
Intel Could Still Be a Big Winner in the AI Server Boom
Server sales are booming, largely thanks to artificial intelligence (AI) server demand. Intel isn't a major player in the AI accelerator market, but its server CPU business can benefit from strong server demand. The company will need to battle competition from AMD and Arm-based servers, but its product lineup is the best it's been in years. 10 stocks we like better than Intel › Demand for artificial intelligence (AI) infrastructure is off the charts. Around the world, companies and countries are investing heavily in AI data centers, fearful of being left behind. While the jury is still out on how long this frantic pace of AI data center build-outs will last, there are no signs of it slowing down anytime soon. Intel (NASDAQ: INTC) has largely missed the AI boat. The company's attempts to break into the AI accelerator market fell flat, and its server CPU business has struggled recently as rival AMD stole market share. Manufacturing delays in the past and a culture of complacency planted the seeds of the current crisis. I wouldn't say that Intel has fully gotten its act together in the server CPU market, but the company has certainly made meaningful progress over the past few years. The server market is expected to grow rapidly over the next few years, and Intel is in a far better position today to reap the rewards. Global server sales topped $250 billion in 2024, according to IDC. With booming sales of AI servers in the first quarter, the forecast from IDC for 2025 now sits at $366 billion. By 2029, IDC sees global server sales nearing $600 billion. Much of this growth will be driven by x86 servers with AI accelerators, although other categories are also set to expand. Although the bulk of spending related to AI servers goes toward GPUs, CPUs are still a critical component. With global sales of accelerated x86 servers expected to nearly triple by 2029, AI servers represent a significant opportunity for Intel's server CPU business. The market for standard x86 servers will also expand, although not nearly as quickly. Intel fell way behind AMD in terms of performance, core count, and efficiency in the early 2020s. One problem was that Intel was stuck on its aging 14-nm process technology due to delays with its 10-nm process, and then it was stuck on its 10-nm process. Sapphire Rapids and Emerald Rapids, which both launched in 2023, both used versions of Intel's 10-nm process, while AMD was able to tap into more advanced process nodes from TSMC. Intel quickly made up some ground in 2024. Granite Rapids moved to the Intel 3 process, which is still behind TSMC, but not by nearly as much. Granite Rapids doubled the maximum core count from Emerald Rapids, and it brought significant improvements in performance and efficiency. Intel also launched Sierra Forest, which features large numbers of efficiency cores and is aimed at cloud workloads. Clearwater Forest, the successor to Sierra Forest, will move to Intel's new 18A process when it launches next year. Diamond Rapids, the successor to Granite Rapids, is also expected to utilize the Intel 18A process and launch sometime in 2026. At that point, the manufacturing gap with AMD should largely be closed. While Intel is well positioned to benefit from soaring server sales, servers built around Arm-based chips pose an additional threat. IDC expects Arm-based servers with AI accelerators to grow from a $32 billion market in 2024 to a $103 billion market by 2029. The x86 architecture is still expected to be dominant, but that dominance will certainly fade to a degree. Even with Arm expected to gain share, the server market will be big enough for Intel to grow its server CPU business. The company will need to fend off AMD and prevent any further market share losses, and its new process technologies will need to arrive on time. Intel may have missed out on the AI accelerator market, but with server sales set to boom through the rest of the decade, the company can still benefit from soaring AI demand. Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Intel Could Still Be a Big Winner in the AI Server Boom was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 hours ago
- Yahoo
Jim Cramer on Intel's CEO: 'He's Monster Good'
Intel Corporation (NASDAQ:INTC) is one of the 25 stocks Jim Cramer recently shared insights on. A caller asked for Cramer's take on the company, and in response, he commented: 'Okay, you know, this is an absolutely great question because, you know, I used to be an Intel hawk, and then I told everyone to sell it for about 40 points. It was a great call by me. This Lip-Bu Tan, who took over, he's monster good, but I think even he is going to have to take another six months to a year before he can turn it around. If you are willing to wait that long, I bless it. But that's not what I think you should do.' A technician soldering components for a semiconductor board. Intel Corporation (NASDAQ:INTC) develops and sells a wide range of computing products and technologies, including processors, GPUs, AI and networking solutions, memory, and advanced chip design tools. During an episode aired in April, Cramer made some positive comments about the company's new CEO as he said: 'Okay, right now it's dead money, but Lip-Bu Tan is the real deal. If you wanted to buy some, I'm not going to fight you, but I will tell you that they need to raise money before they can rally. But if you think the stock's going to be this low two years from now, I think you're making a mistake. I believe in Lip-Bu Tan. He is [the] real deal.' While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
