Northland says that the U.S. military has no alternative to TSMC (TSM) other than Intel (INTC) for advanced logic chips and notes that the Department of Defense requires that the chips they use be manufactured on U.S. soil. For these reasons, the firm believes “the Daddy War Buck (US Government) will continue to provide funding” to the company, as evidenced by the announcements yesterday. While ultimately Northland contends that Intel will “need to be split into pieces,” it believes the sum of the parts is worth $42, its price target, and the firm keeps an Outperform rating on Intel shares.
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