Intel Reveals 2025 Roadmap; Makes Qualcomm and AWS Clients

To reclaim its position in the global chip making race, Intel (INTC) has revealed a detailed process and packaging technology roadmap that guides through a series of innovations to power products through 2025 and beyond.

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Following the announcement, shares of the multinational technology company slipped 2.4% in the pre-market trading session. (See Intel stock chart on TipRanks)

The company introduced two breakthrough process technologies, RibbonFET (Intel’s first new transistor architecture) and PowerVia (a backside power delivery method). It also announced a new naming structure for its process nodes, expected to be launched over the next four years, to help customers with a more accurate view of process nodes across the industry.

Meanwhile, Intel disclosed that Qualcomm (QCOM) and Amazon (AMZN) will be its first major customers. While Qualcomm will be using Intel’s to-be-called 20A process technology, expected to be available in 2024, Amazon Web Services will be using its IFS packaging solutions, which includes the process of assembling chips and stacking them up in a 3D formation.

The CEO of Intel, Pat Gelsinger, said, “We are leveraging our unparalleled pipeline of innovation to deliver technology advances from the transistor up to the system level. Until the periodic table is exhausted, we will be relentless in our pursuit of Moore’s Law and our path to innovate with the magic of silicon.”

Following the announcement, Needham analyst Quinn Bolton assigned a Buy rating to the stock with a price target of $70 (upside potential of 28.9%).

Bolton is of the opinion that the news may disappoint some investors due to hopes of Intel announcing greater outsourcing to its rival Taiwan Semiconductor Manufacturing Co. or acceleration of Intel’s process roadmap (old 7nm/new Intel 4).

He added, “However, we believe Intel is making the right investments to “right the ship”, but acknowledge the turnaround process will take time and will pressure margins and free cash flow in the interim.”

Consensus among analysts is a Hold based on 9 Buys, 11 Holds and 8 Sells. The average Intel price target stands at $60.86 and implies upside potential of 12.1% from current levels.