Oppenheimer Analyst Rick Schiffer has an “outperform” rating Intel Corporation (NASDAQ:INTEC).
The analyst noted that Intel hosted Intel Foundry Direct Connect on Wednesday, where it shared details about the management rebrand and updates to the Foundry services roadmap.
CEO Pat Gelsinger highlighted two distinct business units, Intel Products, which covers traditional customer, data center and networking product lines, and Intel Foundry for on-premises and outsourced manufacturing services.
Read also: Is Intel a sleeping giant or stuck in neutral? The latest analyst opinions shed new light
The analyst noted that Intel's success as a contract manufacturer is mainly limited to advanced packaging, as the company has yet to deliver five contracts in four years.
Intel 4 is shipping in large quantities, and Intel 3 is likely to enter mass production in the first half. Clearwater Forest, clocked on the Intel 18A, is scheduled for release in 2025.
The analyst noted that management announced Intel 14A (1.4nm) and other extensions to the foundry roadmap. Extensions include backfilling existing nodes with new enhancements such as Intel 3-T and Intel 3 enhanced with silicon ports for 3D packaging.
Intel is also expanding its presence in mature nodes through its partnership with 12nm technology United Microelectronics Company (NYSE:UMC).
Intel highlighted its winning foundry design Microsoft Corporation (NASDAQ:MSFT) for 18A and x86-rival Al-Dhraa Holding Company (NASDAQ:ARM) SoC.
US Commerce Secretary Gina Raimondo appeared online, emphasizing the need for a comprehensive onshore semiconductor industry. However, the hoped-for announcement of CHIPS Act funding did not materialize.
Schaefer acknowledged Intel's efforts to achieve process leadership and foundry ambitions, but believes the company remains in a position to prove it as transformation efforts continue over the years. He's stayed on the sidelines here.
Price movement: INTC shares were trading down 0.57% at $43.22 at last check on Thursday.
Read also: Intel is in talks to get more than $10 billion in US CHIP Act funds, aiming to boost the growth of artificial intelligence and semiconductors.
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