There are signs that Intel's next-gen 18A process is finally ready for commercial success. While challenges still abound, one Wall Street analyst has just highlighted the chipmaker's strategic significance to justify reiterating his bullish view on the stock.
To wit, Northland analyst Gus Richard has now reiterated an 'Outperform' rating and a $28 stock price target for Intel.
While declaring that 'Intel is the only alternative to TSMC' in the title of his note, Richard goes on to point out:
"Intel's turnaround remains in doubt, but we believe INTC has a lot of technology and levers to execute its turnaround."
The analyst then notes:
"Next year, INTC will be in the same zip code as TSMC, sharing similar process technology and, along with TSMC, will be a leader in advanced packaging."
Do note that Intel is currently undertaking significant expansion of its Fab 52 and Fab 62, located in Chandler, Arizona. Meanwhile, TSMC is also building a dedicated chip fabrication facility in Phoenix, Arizona.
Moreover, Intel's upcoming 18A process is deemed largely compatible with TSMC's next-gen 2nm node process.
Richard then goes on to speculate that Intel might transition to a SiP package foundry, given its lead in advanced packaging.
For the benefit of those who might not be aware, System-in-Package (SiP) is an advanced process that allows for the integration of a number of ICs and other components into a single package.
Coming back, in what might be Richard's most interesting speculative reverie, he notes that the just-concluded (if the ceasefire holds) Middle East war between Iran and Israel could open a pathway for China to "quarantine" and "ultimately annex" Taiwan, increasing Intel's value in the process.
Meanwhile, as we noted at the beginning, Intel's 18A process is nearing commercial viability. The chipmaker announced at the recent 2025 Symposium on VLSI Technology and Circuits that the new process, which will power Intel's upcoming Panther Lake CPUs and Clearwater Forest E-Core-only Xeon servers, will offer 30 percent more density scaling as compared to the current-gen Intel 3 process, while providing 25 percent higher frequency at ISO and 36 percent lower power consumption at the same frequency.
Moreover, Intel's Products CEO, Michelle Johnston, revealed at the recent BofA Global Technology Conference 2025 that the company would terminate its R&D efforts on any product that does not bring in at least 50 percent margins.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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