Exane BNP Paribas (OTC:) has recently maintained its underperform rating on Intel Corporation (NASDAQ:) with a steady price target of $18.00. Despite this, Intel has secured a significant client for its 18A process technology, which has been highlighted as a positive development.
Intel's management has emphasized the low defectivity rates of its 18A process, with a defect density below the industry's acceptable threshold for high-volume manufacturing. Additionally, Amazon Web Services (AWS) has chosen Intel's 18A process for its Fabric chip, further boosting confidence in Intel's technology. However, the firm notes that this win may not lead to significant volume increases in Intel's Foundry business.
Analysts also point out Intel's strategic shift and the potential separation of Intel Foundry from the company's other operations, hinting at a possible spin-off in the future. This move is crucial as Intel faces challenges in ramping up its foundry business to achieve desired levels of profitability and market share.
InvestingPro Insights reveal that Intel Corporation (NASDAQ:INTC) has a market capitalization of $94.41 billion and a trailing P/E ratio of 43.66. Despite modest revenue growth and a slight decline in quarterly revenue, Intel maintains a robust gross profit margin. The stock has experienced a significant fall in price over the last three months, presenting potential rebound opportunities for investors.
InvestingPro Tips suggest that Intel's low P/E ratio relative to near-term earnings growth may appeal to value investors. With Intel's long-standing market presence and consistent dividend payments, investors can monitor the company's progress through expert financial insights and tips.
As Intel navigates strategic shifts and aims for foundry business growth, investors can use these insights to make informed decisions about their investments.