Deutsche says Intel 18A foundry customer pre-payment a ‘positive endorsement’

After having hosted Intel CEO Pat Gelsinger at the firm’s 2023 DB Tech Conference, Deutsche Bank notes that the executive delivered two positive pre-announcements. Intel said revenues are trending to come in above the midpoint of guidance in Q3, but also “and more importantly in our opinion,” said it has secured a pre-payment for foundry capacity at 18A from a large unnamed customer. The latter news is “a meaningfully positive endorsement of not only the quality of the (company’s) future process nodes, but also the viability of the (company’s) foundry aspirations,” according to the analyst. Deutsche Bank has a Hold rating and $38 price target on Intel shares.