Technology giant Intel Corporation (INTC) recently announced that the U.S. Department of Defense (DoD) has awarded it an agreement under which the company will provide commercial foundry services in the first phase of DoD’s multi-phase Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program. The order was awarded through the NSTXL consortium-based S2MARTS OTA.
Following the news, shares of the company gained 2.4% on Monday. Further, it added to its gains slightly to close at $53.46 in extended trade.
The government’s RAMP-C program facilitates the use of a U.S.-based commercial semiconductor foundry ecosystem to fabricate the assured leading-edge custom and integrated circuits and commercial products required for critical Department of Defense systems.
Under the terms of the order agreement, Intel, along with some other companies, will design and manufacture assured integrated circuits by establishing and demonstrating a semiconductor IP ecosystem to develop and fabricate test chips on Intel 18A. To augment this order, Intel will make use of its recent $20 billion investment in two new factories in Arizona.
The CEO of Intel, Pat Gelsinger, said, “Intel is the sole American company both designing and manufacturing logic semiconductors at the leading edge of technology. When we launched Intel Foundry Services earlier this year, we were excited to have the opportunity to make our capabilities available to a wider range of partners, including in the U.S. government, and it is great to see that potential being fulfilled through programs like RAMP-C.” (See Intel stock chart on TipRanks)
Recently, J.P. Morgan analyst Harlan Sur reiterated a Buy rating on the stock with a price target of $78, which implies upside potential of 46.5% from current levels.
Consensus among analysts is a Hold based on 9 Buys, 11 Holds, and 7 Sells. The average Intel price target stands at $61, implying upside potential of 14.6% from current levels.
Intel scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 8.3% over the past year.
Related News:
Nokia Expands 5G Footprint with A1 Telekom into New Markets
IBM Launches On-Chip Accelerated AI Processor
Uber, Woolworths Partner for Same-Hour Delivery Demand
