Latest news with #IDM2.0
Globe and Mail
15-04-2025
- Business
- Globe and Mail
Intel Stock (NASDAQ:INTC) Slides as Griffin Cove Shows up, Production Methods Revealed
With all the recent drama around sold-off business stakes, we must keep in mind that products are chip stock Intel's (INTC) true bread and butter. And Intel's chip business is carrying on in earnest, with the new line, Griffin Cove, currently in development. We even have some more news about how Griffin Cove will be produced. But this combination of news items did little for investors, who sent shares down over 2% in Tuesday afternoon's trading. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Griffin Cove, considered the 'great-grandchild of Lion Cove,' is currently under way in Intel's chip development centers, reports note. There is quite a bit riding on this processor line, as Intel has been underperforming for some time now, and Intel is having a tough time keeping up with its competitors. But Griffin Cove will have a little something different going for it, reports note, that may give it some edge. Griffin Cove, reports note, will have an 'agnostic' approach with production nodes, which will allow it to be a more adaptable processor. Indeed, earlier rumors noted that Griffin Cove will be part of an all 'P-Core' strategy, which will be first expressed through Razer Lake processors. But with the agnostic approach, Intel designers will have more ability to choose which nodes they go with for production. That is a major step up from IDM 2.0 under Pat Gelsinger, where in-house nodes were commonly adopted, with less than stellar results. Is Mobileye Next on the Block? Selling off part of Altera came as a bit of a surprise to most viewers, though only a bit. Intel needed cash, and new CEO Lip-Bu Tan was making it clear that selling off non-core businesses was the way to get there. And that has many wondering if Mobileye (MBLY) might be next up for sale. Mobileye, the self-driving car hardware operation, is perhaps one of Intel's remaining major non-core operations. While keeping a hand in the self-driving car market might be a good play long term, it likely will distract from Intel's key focus of products and foundry. Though a sale will likely not be immediate, the idea that Intel might sell off pieces of it over several months, or years, is not out of line. It would provide cash and give Intel more room to focus elsewhere. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 27 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 44.43% loss in its share price over the past year, the average INTC price target of $23.08 per share implies 15.86% upside potential. See more INTC analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
04-04-2025
- Business
- Yahoo
Intel and TSMC agree to form chipmaking joint venture: Report
When you buy through links on our articles, Future and its syndication partners may earn a commission. Did the semiconductor manufacturing world just shrink a nanometer or two? Intel and TSMC have reportedly reached a preliminary agreement to create a joint venture to operate Intel's fabs in the U.S. The news comes from Reuters, which cites a report from The Information based on two sources familiar with the matter. Intel has not yet commented on the matter; Tom's Hardware has reached out to the companies for more information. Under the terms of the agreement, TSMC is said to own 20% of the joint venture. It is unclear which companies will own the remaining 80%, but earlier this year TSMc reportedly approached multiple leading fabless chip designers headquartered in the U.S. — including AMD, Broadcom, Nvidia, and Qualcomm — about investing in the joint venture, which would own multiple fabs in America. Both Nvidia and a TSMC board member later denied the discussions. This arrangement was reportedly influenced by the U.S. government, specifically the White House and Department of Commerce, as part of efforts to address ongoing operational difficulties at Intel. U.S. authorities view the partnership as a means to stabilize Intel: The IDM 2.0 strategy has faced multiple challenges as the company has so far become a leader neither in products nor in semiconductor production technologies. At the same time, the current U.S. government will not support sales of Intel's fabs to a foreign investor, especially TSMC. At this point it is unclear what exactly TSMC's involvement would be with Intel's American fabs — which cost tens of billions of dollars — many of which can only be used to make processors for Intel (including fabs capable of producing on Intel 3 and Intel 4 process technologies) and only one or two of which can make processors on Intel's 18A fabrication technology. It is also unclear how TSMC's plans to own 20% of Intel Foundry aligns with its own plans to invest $165 million in its Arizona Fab 21 site to make chips for its partners, including Apple. The financial markets responded quickly to this news. Intel's stock price increased nearly 7% after the report surfaced, which helped the company to recover after a drop of market capitalization caused by the new import tariffs that will be implemented by the U.S. By contrast, shares of TSMC traded in the U.S. dropped by about 6%, highlighting differing investor reactions to the deal. As both Intel and TSMC are in their quiet periods, they cannot make any comments regarding future plans or even factors that can impact them materially, but we have reached out for comment.
Yahoo
26-03-2025
- Business
- Yahoo
Pat Gelsinger supportive of Lip-Bu Tan, warns him about 'the short-termism of Wall Street'
When you buy through links on our articles, Future and its syndication partners may earn a commission. Pat Gelsinger became chief executive of Intel back in 2021 with the aim to turn the company around and regain process technology and product leadership over several years. He was ousted in late 2024 before the job was done, but he remains strongly supportive of the company's mission, so he wants to see the new CEO — Lip-Bu Tan — to finish what he started, he said in an interview with CNBC. "I was committed to and wanting to finish that story on the revitalization of Intel and with the board, the company, and now with Lip-Bu's leadership, you are really cheering them on to finish, because the role that Intel plays in the semiconductor industry is critical and one that's important not just for the industry but for the U.S., so I could not be more supportive of the team and Lip-Bu to finishing their journey," said Pat Gelsinger. The challenges Intel faced, particularly around funding and market expectations, made the transformation extremely difficult. Gelsinger pointed out that one of the biggest obstacles was the financial burden of building a next-generation fabrication network. He noted that his IDM 2.0 strategy — under which Intel remains a vertically integrated maker of its own chips and a contract chipmaker with third party clients — was still the correct one, but acknowledged how capital-intensive and demanding it is for any company. As Intel's core business declined faster than expected, it became clear that external capital was needed to fund the initiative. "It is a heavy assignment, and for any company to carry the financial requirements of building next-generation technology fab network, it is very heavy in terms of capital returns required and the investments required to go accomplish that," Gelsinger acknowledged. "As Intel's core business was challenged and deteriorated more quickly than many people expected, there was just such a need for capital to come from elsewhere." The former CEO of Intel also criticized the short-term focus of financial markets, which he said clashed with the long-term nature of the transformation Intel was undergoing. He described the tension of trying to execute a multi-year strategic shift while meeting quarterly financial expectations, emphasizing that such balancing was extremely difficult. He noted that this is exactly what Lip-Bu Tan will face in the coming quarters."As I have spoken about, the short-termism of Wall Street makes that very challenging and why, yet again, I would say my very best to Intel and Lip-Bu in finishing that seminally important journey," said Gelsinger. "Being a CEO for a transforming public company I truly think is one of the hardest jobs available, because you are trying to do a five-plus-year transformation on a 90-day shot clock, with heavy financial expectation — that is hard." In summary, Pat Gelsinger made it clear that despite leaving, he wants Intel — the company that he spent decades in — to succeed and believes in the path the company is on. He reiterated his full support for both the board and Lip-Bu Tan as they continue forward with the IDM 2.0 vision. Sign in to access your portfolio
Globe and Mail
17-03-2025
- Business
- Globe and Mail
INTC Stock Forecast: Can Lip-Bu Tan Create the ‘New Intel' That Pat Gelsinger Couldn't?
Last week, Intel (INTC) appointed Lip-Bu Tan as its new CEO, and in his message to employees, he talked about creating the 'new Intel.' Notably, when his predecessor Pat Gelsinger took office in 2021, he also embarked upon 'transforming' Intel under the IDM 2.0 strategy, which in hindsight, we know did not go as planned. Gelsinger's strategy did not yield the desired results, and the once iconic chip company continued to sink deeper on an absolute as well as relative basis. The year 2024 turned out to be the worst year for Intel stock in more than one way. INTC lost 60% of its market cap — its worst price action in history — while posting a record net loss of $18.8 billion. The company announced 15,000 layoffs, again the highest in its history, and also had to suspend its dividend amid soaring losses and rising cash burn. If that wasn't enough, the S&P Dow Jones Indices replaced Intel with Nvidia (NVDA) in the 30-share Dow Jones Industrial Average Index ($DOWI). The announcement was hardly a surprise and a reflection on how Intel lost out to rivals over the years. It is no longer the chip industry bellwether it once was. What Went Wrong with Intel? Before we examine whether Intel's new CEO can turnaround the ailing company, let's examine what went wrong with the restructuring under Gelsinger. To be sure, at least on paper, Gelsinger's strategy looked solid. He intended to make the company a global leader in the foundry business by setting up factories in the U.S. and Europe, both of which are looking to support domestic chip manufacturing. He also put focus on innovation, especially AI chips where the company lost out big time to Nvidia. Intel was also looking to monetize its stake in some businesses and listed Mobileye Global (MBLY), even as it still holds the majority of the stake. The company has also been looking to list Altera, which it acquired for almost $17 billion in 2015. In a nutshell, Gelsinger wanted Intel to be a combination of Nvidia and Taiwan Semiconductor Manufacturing Company (TSM), which was never going to be easy. Both Nvidia and TSM have built a strong moat in their respective businesses. As things turned out, Gelsinger overestimated Intel's capabilities, which is aptly reflected in the poor performance of its Gaudi AI chip. Tan Wants to Build a 'New Intel' In his note titled 'Remaking our company for the future,' Tan talked about making the 'new Intel' and said, 'We will learn from past mistakes, use setbacks to strengthen our resolve and choose action over distraction to reach our full potential.' Tan said Intel will work toward restoring its 'position as a world-class products company, establish ourselves as a world-class foundry and delight our customers like never before.' INTC Stock Forecast Wall Street took note of Tan's appointment, and Bank of America upgraded INTC from an 'Underperform' to 'Neutral.' The analyst raised the INTC target price from $19 to $25 citing the CEO's 'solid track record.' Bank of America did caution that 'The upside potential, however, is balanced against risks from a lack of AI roadmap and increasing competition from ARM-based PC and server CPU rivals.' Overall, Intel has a consensus rating of 'Hold' from the 37 analysts covering the stock and its mean target price of $24.43 is just about 1.5% higher than the March 14 closing price. Can Intel's New CEO Turn Around the Company? Intel, which became the world's biggest chipmaker in 1992, is now fighting for relevance. Comparisons have been drawn between Intel and other fallen giants like Nokia (NOK), Kodak (KODK), and Blackberry (BB), which once held dominant positions in their respective industries but are now shadows of their glorious pasts. I won't write off Intel yet, partially because of bipartisan support from Western politicians for the onshoring of chip production. The company is too big and too important for the U.S. to let it fail, and President Donald Trump has reportedly called for TSM's help to revive the company. Intel's sum-of-the-parts valuation could be more than the stock's current valuation, considering that the book value of its foundry segment's property, plant, and equipment is higher than the company's market cap. Notably, reports suggest that several companies, including Qualcomm (QCOM) and TSM, have expressed interest in Intel's foundry business, and the latter even pitched a joint venture to Nvidia, Advanced Micro Devices (AMD), and Broadcom (AVGO) to run that business. There is potential for value unlocking for Intel shareholders as the company explores its options under the new CEO. Corporate turnarounds are seldom easy, but I will continue to bet on Intel as the company now embarks on its second turnaround in just about four years.
Globe and Mail
04-03-2025
- Business
- Globe and Mail
Nvidia and Broadcom Test Advanced Chip Production with Intel's 18A Process
In a bold strategic shift, chip design giants %Nvidia (NASDAQ: $NVDA) and %Broadcom (NASDAQ: $AVGO) have begun testing Intel's advanced 18A process technology for %Semiconductor production. This move marks a significant shift in the competitive landscape of chip manufacturing, potentially strengthening Intel's position in a sector long dominated by and Samsung. The semiconductor industry is experiencing a seismic shift driven by AI advancements, high-performance computing (HPC), and the insatiable demand for smaller, faster, and more power-efficient chips. Intel's 18A process node —expected to rival TSMC's 3nm technology —is at the heart of this transformation, and its success could have profound implications for Nvidia, Broadcom, and the broader semiconductor market. Why This Matters for Investors The partnership between Intel, Nvidia, and Broadcom is a signal that chip designers are willing to diversify their supply chains beyond traditional foundries. This collaboration suggests that Intel's manufacturing processes are maturing, which could: - Reduce reliance on Asian foundries (TSMC, Samsung) amid geopolitical tensions. - Strengthen Intel's IDM 2.0 strategy, which aims to reassert its leadership in chip manufacturing. - Open new revenue streams for Intel through foundry services, competing directly with TSMC. Intel's stock has struggled in recent years as it lagged behind competitors in process technology. However, if Nvidia and Broadcom successfully validate Intel's 18A process, it could boost investor confidence, driving Intel's market valuation higher. Investors should closely monitor Intel's manufacturing progress and partnership developments. Industry and Market Context - TSMC dominates the semiconductor market with over 60% market share in global chip manufacturing. - The semiconductor industry is projected to reach $1 trillion by 2030, according to McKinsey & Co. - Intel has pledged $20 billion in U.S. semiconductor expansion as part of its comeback strategy. - Geopolitical concerns and the CHIPS Act are driving companies to seek U.S.-based manufacturing solutions. Intel's 18A process represents a critical milestone in regaining technological leadership. The U.S. government's CHIPS and Science Act, which aims to bolster domestic semiconductor production, further enhances Intel's positioning as a competitive alternative to Asian manufacturers. Future Trends to Watch - Intel's Manufacturing Timeline - Investors should track Intel's ability to meet production targets and secure more design wins from major clients. - Nvidia and Broadcom's Final Decision - If these chip designers commit to Intel's process beyond initial testing, it could signal a major industry shift. - AI and Data Center Chip Demand - AI-centric chips are fueling unprecedented demand for cutting-edge semiconductor technology. The success of the 18A process could determine Intel's role in the AI-driven future. Key Investment Insight Investors should watch Intel's foundry business growth, potential new partnerships, and any market share gains against TSMC and Samsung. If Intel successfully commercializes the 18A process and secures high-profile customers, its stock could see significant upside. Nvidia and Broadcom's involvement suggests confidence in Intel's roadmap, making this a pivotal moment for semiconductor investors. The semiconductor industry is at a turning point. Intel's 18A process success could reshape the global chip manufacturing landscape, while Nvidia and Broadcom's involvement adds further credibility to its potential. Investors looking to capitalize on this trend should stay informed on Intel's manufacturing developments and industry partnerships. For more timely market insights and expert investor analysis, stay updated with —your trusted source for financial and investment news.
