Investing
Intel ‘needs to be a foundry,’ says Northland
© Reuters. Intel (INTC) ‘needs to be a foundry’ says Northland
Northland Capital Markets reiterated an Outperform rating and $45 price target for Intel (NASDAQ:) shares in a note Wednesday.
Analysts at the firm told investors in a research note that INTC’s most important object is to regain process technology leadership which they believe is on track.
“The second is creating a profitable foundry that external customers can use,” wrote the analysts. “We believe filling older fabs no longer needed for Intel’s internal products with foundry customers fixes INTC’s business model.”
The analysts stated that Intel “needs to be a foundry” and must succeed in the market to drive scale.
“If successful, INTC could drive high-margin leading-edge revenue with its internal products and decent trailing-edge gross margin by filling old fabs with foundry customers,” the analysts concluded.
Intel shares are down around 2.5% at the time of writing.
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