According to media reports, microchip designer Intel (INTC) is exploring a possible foundry alliance with Korean technology manufacturer Samsung.
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Intel has reportedly been in talks with Samsung and is exploring “…the possibility of forming a foundry alliance.” Intel has been working to buildout its foundry operations for some time, and has attracted some high-end clients, including Amazon Web Services.
Samsung, meanwhile, has been running its foundry operations for a bit longer, but is still fairly far behind in the field. The hope is that the two companies will be able to put together their respective productions.
Can Intel Stage a Comeback?
While this plan to team up with Samsung might be helpful going forward, there may be a more immediate solution to many of Intel’s woes, according to media report. A strong third quarter might be just what the doctor ordered for Intel.
Intel’s foundry business might be able to help. Reports suggest that the biggest make-or-break for Intel will be its new 18A manufacturing process. Intel has already revealed that several important milestones have been reached, but the process will not actually go live until 2025.
Is Intel Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and seven Sells assigned in the past three months, as indicated by the graphic below. After a 32.95% loss in its share price over the past year, the average INTC price target of $25.34 per share implies 13.53% upside potential.
