Intel CEO Discusses Progress in Foundry Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: stocktwits
- Foundry Business Priority: Intel CEO Lip-Bu Tan emphasized that turning around the foundry business is a top priority, having signed foundry deals with Tesla and Google, and is reportedly in talks with Apple for chip manufacturing contracts that could generate $10 billion in annual revenue, showcasing strong market appeal.
- Growing Customer Demand: Tan confirmed that Intel's foundry business has “multiple customers engaged,” with improvements in its 14A and 18A processes driving increased customer interest, which not only enhances the company's competitive edge but also has the potential to attract more major clients.
- Strong Financial Performance: Intel's recent quarterly revenue rose 7% to $13.6 billion, beating Wall Street estimates by approximately 9%, while data center and AI sales surged 22% to $5.05 billion, indicating robust performance in high-demand sectors.
- Market Sentiment Shift: Despite retail investors maintaining a 'bearish' sentiment towards Intel, the stock has surged 193% year-to-date, reflecting optimistic market expectations for the company's future developments, with investors eagerly anticipating significant announcements.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 111.780
Low
20.00
Averages
39.30
High
52.00
Current: 111.780
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Customer Collaboration Potential: Intel is in discussions with Amazon and Alphabet to provide advanced chip packaging services and has reportedly struck a preliminary deal with Apple, which could significantly elevate Intel Foundry's market position if successful.
- Financial Challenges Emerge: Despite generating $5.4 billion in revenue for its foundry business in Q1 2026, Intel reported an operating loss of $2.4 billion, highlighting severe challenges in achieving profitability.
- Market Valuation Risks: Intel's enterprise value has surged to $568 billion, with an EBITDA multiple of 42, significantly higher than industry leader TSMC's 24, suggesting that market expectations for Intel's future growth may be overly optimistic.
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- Government Support Boost: The U.S. government's announcement of an $8.9 billion equity investment to support the domestic semiconductor supply chain has enhanced Intel's market credibility, driving its stock price up 453% over the past 12 months.
- Customer Collaboration Potential: Intel is in discussions with Amazon and Alphabet to provide advanced chip packaging services and has reportedly struck a preliminary deal with Apple, which could significantly elevate Intel Foundry's market position if successful.
- Financial Challenges Emerge: Despite generating $5.4 billion in revenue for its foundry business in Q1 2026, Intel reported an operating loss of $2.4 billion, highlighting severe challenges in achieving profitability.
- Market Valuation Risks: Intel's enterprise value has surged to $568 billion, with an EBITDA multiple of 42, significantly higher than industry leader TSMC's 24, suggesting that market expectations for Intel's future growth may be overly optimistic.
See More
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- Significant Revenue Growth: GitLab reported a 23% year-over-year increase in fiscal Q1 revenue, reaching $264.2 million, exceeding the guidance of $253 million to $255 million, indicating strong growth within its customer base.
- Strong Customer Expansion: The company achieved a 30% growth in new customer acquisition, with a dollar-based net retention rate of 117%, demonstrating solid revenue growth from existing customers, particularly in the enterprise segment.
- Optimistic Future Outlook: GitLab raised its fiscal 2027 revenue guidance to between $1.112 billion and $1.118 billion, projecting a growth rate of 16% to 17%, while also increasing its adjusted EPS forecast, reflecting management's confidence in future performance.
- Organizational Restructuring: The company announced a 14% workforce reduction and exit from 22 countries, yet plans to increase the number of sales representatives, expecting a positive impact on sales performance in the second half of the year, indicating a strategic focus on operational efficiency while expanding market reach.
See More
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- Technological Advantages and Use Cases: Solana's near-instant transaction settlement and minimal fees position it as a formidable competitor to traditional payment processors, making it ideal for high-volume applications like payments and AI agents, further driving the expansion of its ecosystem.
- Stablecoin Partnerships and Market Position: Solana has established multiple stablecoin partnerships with traditional financial firms, such as Western Union building its stablecoin on Solana, which not only strengthens its market position but also lays the groundwork for future mainstream adoption.
See More
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- Nvidia's Market Dynamics: Nvidia became the first company to reach a $5 trillion market cap by late 2025, but after a recent pullback, it now sits just below that level, maintaining its position as the most valuable company globally, reflecting its strong leadership in the AI sector.
- Alphabet's Growth Momentum: Alphabet's market cap recently fell to $4.45 trillion after a stock market pullback, yet its first-quarter cloud revenue surged 63% year-over-year to $20 billion, indicating robust growth potential in the AI market.
- Microsoft's Challenge: With a market cap of around $3.1 trillion, Microsoft reported an 18% revenue increase to $82.9 billion in its third quarter, and its AI business reached a $37 billion annual revenue run rate, but catching Nvidia will require higher investor valuations and sustained cloud growth.
- Apple's Competitive Edge: Apple, valued at over $4.5 trillion, benefits from a vast installed base of over 2.5 billion active devices and strong iPhone demand, particularly with the upcoming new iPhone model and the overhaul of its AI assistant Siri, suggesting significant future growth potential.
See More
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- Tech Stock Struggles: Broadcom's stock plummeted 12.6% post-earnings, failing to meet high market expectations, which undermined investor confidence and exacerbated the overall decline in tech stocks.
- IPO Surge: SpaceX plans to issue 555.6 million shares at $135 each, raising approximately $75 billion and achieving a market value of $1.8 trillion, highlighting strong demand for high-tech companies but raising concerns about market oversupply.
- Investor Sentiment Dips: Following Alphabet's announcement of an $85 billion stock sale to fund AI investments, the market reacted negatively, with Meta Platforms also dropping over 6% due to potential dilution fears, reflecting investor apprehension about equity dilution.
See More
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- New CPU Challenge: Nvidia's launch of the standalone Vera CPU, which completes tasks 1.8 times faster than x86 processors, indicates its potential to manage AI agent tasks and could reshape the CPU market landscape.
- Significant Market Opportunity: With the standalone CPU market valued at approximately $200 billion, Nvidia forecasts $20 billion in revenue from standalone CPUs this year, showcasing its strong growth potential in this new market.
- Innovative Partnership with Microsoft: Nvidia's collaboration with Microsoft to introduce the RTX Spark superchip, which integrates a new custom CPU with the Blackwell GPU, aims to redefine the personal computing market and drive sales of premium products.
- Clear Strategic Goals: Nvidia has set its sights on becoming the world's leading CPU supplier, and while it may take time to penetrate various price points, its potential in the high-end market is undeniable.
See More
