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Intel (INTC) shares are extending gains on June 17 after the multinational confirmed it has kicked off “risk production” for its next-generation 18A-P manufacturing node.
The announcement brings INTC closer to finalizing a potential chip-making deal with Apple (AAPL), and positions it strongly to compete for new premium foundry clients.
At the time of writing, Intel stock is trading at roughly 3x its price at the start of this year.
Why Is 18A-P News Bullish for Intel Stock
Entering risk production means Intel is now gathering actionable data required to optimize yields before full-scale manufacturing begins.
The company’s 18A-P node delivers a notable 9% increase in chip performance at matched power or reduces energy consumption by an exciting 18% at equal performance levels.
Built with revolutionary RibbonFET and PowerVia backside power delivery innovations, this node also integrates a new “Power Boost” transistor design, delivering a 20% improvement (at least) in thermal resistance.
The announcement is bullish for INTC shares as it signals the company’s foundry roadmap is now de-risking, and its premium-node ambitions may be commercially viable after all.
Why 18A-P Node May Drive INTC Shares Higher
Intel shares rallied on Wednesday because the 18A-P news represents the ultimate proof of concept for the company’s independent foundry model.
Crucially, the 18A-P process is entirely design-rule compatible with the original 18A ecosystem.
This allows potential external clients to easily migrate existing intellectual property (IP) and design flows without rebuilding their chips from scratch.
With volume production of base 18A already churning at its Arizona facility, pulling off a smooth 18A-P transition reinforces INTC’s stature as a legitimate, high-yield alternative to TSMC.
If risk production precedes high-profile third-party commitments in the coming months, Intel could unlock massive, high-margin revenue streams that may fundamentally revalue the semiconductor stock.
Wall Street Recommends Caution in Playing Intel
Investors should note, however, that Wall Street analysts seem to believe many of these positives are priced into INTC stock already.
According to Barchart, the consensus rating on Intel sits at “Hold," with the mean price target of about $93 indicating potential downside of more than 23% from current levels.
