July 7 – n the latest development, Intel (NASDAQ:INTC) is weighing a fast-track pivot from its 18A foundry node to the more advanced 14A process. The shift would shelve most external 18A volumes, beyond Intel’s own Panther Lake CPU, and accelerate 14A ramp-up to court customers like Nvidia (NASDAQ:NVDA). Intel has acknowledged small 18A deployments with Amazon and Microsoft, but broader adoption has lagged.
Under CEO Lip-Bu Tan, Intel Foundry has pledged to listen closely to client needs and build trust, signaling a move toward a more software-driven, customer-centric model.
Abandoning external 18A volumes could trigger asset impairments, as Intel depreciates foundry assets on a straight-line, eight-year schedule. Billions of dollars in capex may be at risk of write-downs.
The timing adds urgency: Taiwan Semiconductor (NYSE:TSM) plans to ramp its N2 process later this year with early partners AMD (AMD) and Apple (NASDAQ:AAPL), creating pressure for Intel to keep pace on performance and scale, even if the two nodes aren’t direct apples-to-apples matches.
Accelerating 14A could bolster Intel’s foundry appeal, but it carries execution and financial risks. The decision will test Tan’s strategy to revive Intel’s competitiveness.
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.