Intel foundry momentum ‘gaining steam,’ says Deutsche Bank

Deutsche Bank analyst Ross Seymore says the most material news from Intel last night was the multi-year, multi-billion dollar partnership with Amazon Web Services to produce an arterial intelligence fabric chip on 18A, as well as engagements for additional foundry designs on Intel 18A, Intel 18AP, and Intel 14A. Away from the foundry business, the AWS collaboration also involves production of custom Xeon 6 processors on Intel 3, the analyst tells investors in a research note. The firm believes Intel’s foundry momentum is “gaining steam” with the AWS news and the Secure Enclave award. In addition to the foundry customer news, Intel made several announcements aligning to the cost reduction goals it set out on its last earnings call, contends Deutsche Bank. The firm keeps a Hold rating on the shares with a $27 price target.