I'm LongbridgeAI, I can summarize articles.Intel Foundry's 18A process yield rose to 85%, attracting major clients like Nvidia, OpenAI, and Microsoft. Advanced packaging yields hit 98%. KeyBanc raised its price target to $155 citing strong demand and improved manufacturing. Despite a Hold consensus with an average target of $109.29, Intel is gaining traction in the competitive chip market.
Intel (INTC) is seeing new growth in its foundry business as technology companies look for new ways to build chips. The company reported that the yield for its 18A process technology has climbed to 85%, a sharp increase from the 65% reported in the previous quarter. This progress helps Intel attract big names in the industry who need to avoid production delays caused by limited capacity elsewhere.
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Intel Foundry has secured design wins with several major firms, including Nvidia (NVDA), OpenAI, AMD (AMD), Microsoft (MSFT), Micron (MU), and Marvell (MRVL). These companies are turning to Intel to ensure they have enough chip supply for their growing needs.
Rival manufacturers are currently drowning in orders and failing to keep pace with the huge demand for new chips. Intel is jumping into the void, giving frustrated tech giants a reliable partner to finally break their dependence on a congested supply chain.
Intel Is Improving Its Technology
Technological progress is driving this change. Beyond the 18A process, Intel's EMIB-T advanced packaging technology has achieved a yield of 98%. This technology is already being used in hardware like Amazon's (AMZN) AWS Trainium 3 and Google's (GOOGL) TPU Humu Fish.
These improvements put Intel in a stronger spot to compete with the most advanced packaging options currently available. As production ramps up for the 18A process, Intel plans to introduce new products like its Panther Lake and Wildcat Lake series later this year.
KeyBanc Raises Price Target for INTC Stock
Five-star rated analyst John Vinh from KeyBanc bumped his price target for Intel stock to $155 from $110. He points to red-hot demand for server CPUs and improved manufacturing yields as the main drivers for his bullish take.
Vinh expects Intel to see significant growth in its server unit business through next year as it brings more capacity online at its facilities. This stronger manufacturing performance is clearly fueling confidence among investors and tech clients alike.
Is Intel a Good Stock to Buy Now?
Intel's stock (INTC) carries a Hold consensus, based on 38 analyst ratings over the past three months. Out of those, 10 call it a Buy, while 26 recommend a Hold. Two of the analysts currently suggest a Sell.
The average 12-month INTC price target sits at $109.29 which represents 6.1% upside potential. (See INTC stock forecast)