Intel: Massive 18A Foundry Prepayment

Summary:

  • Intel has received a “significant” foundry prepayment for its 18A process node, signaling progress in its turnaround efforts as the very first tangible evidence of regaining process leadership.
  • The company is accelerating the buildout of its new Arizona fabs, indicating that all pieces are coming together for a successful turnaround.
  • The market is not giving Intel credit yet for these developments, as transforming from industry laggard to leader significantly changes the potential financial profile.
Entrance of The Intel Museum in Silicon Valley.

JHVEPhoto/iStock Editorial via Getty Images

Investment Thesis

After nearly three years of having to hear that the roadmap was “on schedule” as the only sign of the turnaround progressing, Intel (INTC) finally delivered a bombshell moment by announcing that it has received a “large”, “significant” foundry prepayment


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