In March this year, Intel appointed new executive Chen Liwu to take over the troubled Intel. Most Huaer Street analysts are cautious and optimistic, but now the outside world's comments on Intel are gradually modeled and retained, which seems to be a lack of confidence in the transformation plan.
Loop Capital analyst Gary Mobley believes that it is difficult to directly evaluate Intel's initial transformation strategy, because the company is in two obvious difficulties. Telco is more successful in its advanced manufacturing process. If Intel products compete with AMD, NVIDIA and Arm ecosystems, Telco is a more suitable crystalline foundry partner.
But this ideal choice still has potential risks, mainly because Intel's fixed costs lack the large number of orders from its own product department, will not be able to receive support. Therefore, while Intel Foundry and product businesses are still tightly bundled, the crystal foundry business department will become a counter-style for the product department.
Mobley said that if Intel's future story can be pulled from the "Foundry 2.0" strategy, or separate the Crystal Foundry Department from the parent company, it may take a more positive view of the evaluation, so the rating hold and target price is $25.
At the same time, Wells Fargo also said that it is actually too early to judge Intel's comprehensive transformation. Although the agency has positive reviews on the yield rate of the 18A process, it also does not have a clear time-to-market statement on the Diamond Rapids Xeon processors that adopt this process.
Fuguo Bank also pointed out that AMD is expected to continue to expand from the second half of 2025 to 2026, mainly due to the 2-nanometer-process Zen 6 EPYC platform, and Intel is currently suffering from double-choice attacks from AMD and Arm in its PC business.
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