Intel's INTC) stock dipped after their CFO David Zinsner spoke at the J.P. Morgan tech conference. He admitted that, right now, outside interest in Intel's new foundry services is pretty thin. Even as they roll out the next-gen 18A node, most of the early volume is booked for Intel's own chips—think the upcoming Panther Lake—landing before year-end.
Zinsner was quick to note that hitting break-even on the foundry side doesn't demand huge third-party orders—mid-single-digit billions in revenue should do it—but convincing external clients to trust Intel on IP protection and supply-chain security will take time.
Investors reacted by driving INTC down to $21.26 on May 14, off about 1.9%, while AMD and TSMC climbed 5.8% and 0.7%, respectively. Price targets are all over the map—from $14 to $28.30—with an average of $21.30 and a GuruFocus value of $23.50.
On the leadership front, Zinsner had praise for new CEO Lip-Bu Tan's push to flatten the organization and get engineers back on the lab floor, closer to customer feedback. He hinted that this shift could turbo-charge Intel's AI roadmap by speeding up product cycles and tightening client collaboration.
Why it matters: If Intel can't drum up external foundry business soon, it risks lagging behind AMD and TSMC just as demand for advanced nodes heats up. Investors will be watching for that first big outside deal and any signs of momentum in Q2's guidance.
