Intel's (INTC) CFO just put his money where his mouth is. Now investors are asking if they should follow his lead. David Zinsner purchased 5,882 shares of Intel at $42.50 each on Jan. 26, just days after the chipmaker's earnings report sent the stock tumbling. The timing is notable. INTC stock had cratered 17% on Friday following weak guidance and warnings about supply constraints that spooked Wall Street. For a CFO to step in with his own cash right after such a selloff sends a message. But is it the rig ...

Welcome back to Morning Trade Live. Let's focus on chip stocks. Now, Intel is selling off this morning after earnings.More on that momentarily, but here is the price action for the other major names in the space. So, we do have Nvidia high by 1 and a half% right now. AMD is also higher by 4% almost and Broadcom is lower on the day.So, a very mixed split picture across our major semiconductor stocks this morning. So, let's get the details on this. Intel is the focus of the morning trade.Obviously, joining us ...

Core Insights - Intel announced a $28 billion investment in two new chip factories in Ohio in 2022, aiming to become a world-class foundry for external customers, with initial production expected to start in 2025 [1] - The Ohio project has faced multiple delays due to challenges in securing external foundry customers, with the target date for the first fab's production now pushed to 2030 [2] Group 1 - Intel's 14A process node, set to launch in 2027, will proceed only if the company can attract significant external customers [2] - Intel's 18A process node, currently ramping in Arizona, has seen yield improvements, now exceeding 60%, which supports the launch of Panther Lake CPUs [5] - Despite initial struggles, Intel 18A is expected to be successful and profitable in the long run, but the true test will be the success of Intel 14A [6] Group 2 - Recent job postings by the construction company for Intel's Ohio fabs suggest that construction may be ramping up [7] - CEO Lip-Bu Tan's recent comments indicate a more optimistic outlook for the Intel 14A process, contrasting with earlier cautious statements [8] - Increased hiring at the Ohio fab and Tan's remarks suggest potential success in engaging customers for the Intel 14A process, which may lead to an accelerated construction timeline [9]

Core Viewpoint - Intel is on track to potentially become a major foundry customer for Apple, with significant improvements in visibility regarding its advanced node supplier status [1][4] Group 1: Apple and Intel Collaboration - Apple is expected to utilize Intel's 18A-P process for its lowest-end M-series processors, with shipments anticipated to start in the second quarter of 2027, and initial annual volumes projected between 15 million and 20 million chips [2] - The deal could be worth approximately $1 billion annually for Intel, as Apple currently pays TSMC around $45 for each A18 chip, with costs expected to rise for TSMC's next-generation nodes [3] Group 2: Intel's Foundry Business Challenges - Intel faces technical challenges in establishing a competitive foundry business, including achieving acceptable manufacturing yields and profit margins, as well as winning the trust of potential customers [4][5] - Intel's previous attempts to build a foundry business were unsuccessful, and the perception that it lacks foundry expertise remains a significant hurdle [5] Group 3: Strategic Implications for Apple - By bringing Intel in as a secondary supplier, Apple could reduce its dependence on TSMC, potentially lowering overall costs and gaining leverage in price negotiations [6] - If the collaboration proves successful, Apple may consider shifting more volume to Intel, further increasing the deal's value [6] Group 4: Future Prospects for Intel - Even if the Apple deal materializes, it will take several years for Intel Foundry to achieve profitability, necessitating additional customers for its 18A and upcoming 14A processes [7] - Intel has its own chips scheduled for release using the 18A process, which could enhance its appeal to potential foundry customers if they perform well [8] Group 5: Market Impact - Winning Apple as a foundry customer would be one of the most impactful developments for Intel, with significant revenue potential and the possibility of attracting additional customers [9]

Group 1 - Intel's stock has increased by 83% over the past three months, positively impacting semiconductor investors and its partner Synopsys [2] - Intel's business challenges are evident, with the Client Computing Group (CCG) and Data Center and AI (DCAI) performing well, while the Intel Foundry segment faces difficulties [3][6] - The foundry business is crucial for Intel's growth, as it shifts to offering manufacturing services to external customers [4] Group 2 - Intel CEO Lip-Bu Tan indicated a more cautious approach moving forward, focusing on capacity growth based on volume commitments and tangible milestones [5] - Recent operational changes include halting manufacturing projects in Poland and Germany, slowing construction in Ohio, and relocating Costa Rica operations to Vietnam and Malaysia [5] - Synopsys' weak results in the Design Intellectual Property (IP) business are linked to challenges at a major foundry customer, likely Intel [7][8]

Core Viewpoint - Intel is in early discussions with AMD to potentially become a customer for Intel's foundry business, indicating a strategic move to expand its manufacturing partnerships [2] Group 1: Company Developments - Intel is reportedly exploring collaboration with AMD, which is led by CEO Lisa Su, to utilize its foundry services [2] - The discussions suggest Intel's intent to diversify its customer base for its foundry operations, which are still in the early stages [2] Group 2: Industry Implications - The potential partnership between Intel and AMD could signify a shift in the competitive landscape of the semiconductor industry, as companies seek to leverage each other's strengths [2] - This move may reflect broader trends in the industry where collaboration is becoming increasingly important for growth and innovation [2]

Core Viewpoint - Intel is in early discussions with AMD to manufacture chips for AMD in its foundry business, which could significantly enhance Intel's foundry operations and market position [1][2]. Group 1: Intel's Foundry Business - Engaging AMD as a customer would be a major win for Intel's foundry business, which is actively seeking large clients to bolster its manufacturing capabilities [2]. - A partnership with AMD would allow Intel Foundry to invest confidently in developing its manufacturing technology and signal to other chip companies that Intel can manage their production needs [2]. Group 2: AMD's Position - If AMD begins manufacturing chips with Intel, it would indicate AMD's confidence in collaborating with its primary competitor in the x86-based chip market for PCs and servers [3]. - Currently, AMD manufactures its chips with TSMC, and the extent of potential manufacturing with Intel remains unclear [3]. Group 3: Investor Confidence - Recently, Intel has attracted significant investors, including the U.S. government, Nvidia, and Softbank, reflecting growing confidence in the company's turnaround efforts under new CEO Lip-Bu Tan [4]. - Intel's shares have increased nearly 77% in 2025, indicating rising investor confidence in the chipmaker [4]. - However, Nvidia has not committed to utilizing Intel's foundry services [4].

Core Viewpoint - Intel's stock has surged nearly 70% since August 1, 2025, driven by investments from Nvidia and the US government, with potential new investment discussions with Apple [2][4][6]. Investment and Partnerships - Intel is reportedly in early discussions with Apple regarding a potential investment and collaboration, marking a significant step in Intel's turnaround strategy [3][4]. - The company has received substantial investments recently, including a $5 billion investment from Nvidia and a $2 billion investment from SoftBank, aimed at enhancing its product development and market position [6][7]. Historical Context - Apple was a long-time customer of Intel but began moving away in 2020 to utilize more in-house components, acquiring most of Intel's modem chip business in 2019 [4][5]. - Despite the historical relationship, analysts believe it is unlikely that Apple will revert to using Intel processors for its devices, as they currently rely on chips from Taiwan Semiconductor Manufacturing Company (TSMC) [4][5]. Challenges and Market Position - Intel faces significant challenges, having lost market share to AMD and struggling to compete in the AI sector, where Nvidia has gained a dominant position [7]. - The company is working on a turnaround plan, with a focus on increasing domestic production and enhancing its foundry business, which is expected to see major developments in the coming years [12][13]. Market Reaction - The news of potential partnerships has positively influenced Intel's stock, with shares closing 6.5% higher following the rumors, and a month-to-date increase of approximately 35% [8][16]. - Analysts view the proactive approach of Intel in seeking partnerships as a positive sign for its future prospects, despite acknowledging the volatility and challenges ahead [10][16].

Investment Recommendation - City Research downgrades Intel's stock to "sell" from "neutral," citing limited impact from the Nvidia partnership and minimal chances of success for Intel's foundry business [1] - Analyst believes Intel should exit the money-losing foundry business, which could unlock $1 to $2 in earnings power [4] Intel's Foundry Business - Intel's efforts to make chips for other companies, especially at the leading edge, have not progressed significantly in the last 10-20 years [6] - Intel is still 2-3 years behind Taiwan Semiconductor Manufacturing (TSMC) in foundry technology and is losing billions of dollars in this endeavor [7] - The foundry business is seen as antithetical to Intel's core strength of manufacturing its own chips [8] Nvidia Partnership - Nvidia's $5 billion investment in Intel is not considered a significant amount, given Nvidia's $67 billion in cash reserves [2] - The partnership might result in $500 million to $2 billion at best for Intel, which is not enough to move the needle for a $53 billion company [4] - A significant portion of investor questions during the Intel-Nvidia conference call focused on whether the deal would lead to a foundry arrangement [9] Competitive Landscape - Intel is still behind AMD in terms of processor technology, and a better graphics chip does not necessarily improve the core processor [4]

Intel uh coming off its uh best day in a long long time. The stock surged 22% following Nvidia's announcement that it will invest $5 billion in Intel. Joining us now is Ray Wong, Constellation Research founder and chairman.What I'm looking over in Becky's chair. It's a lot of room there. Normally you're in here with us.Uh Ray, I put on some extra makeup because you usually take a a picture and tweet it out. What What happened. Why aren't you here.Hey, I'd love to be in New York. Happy Friday. I I ended up i ...