Intel shares increased 7.3% on Tuesday following an upgrade from KeyBanc Capital Markets analyst John Vinh. Vinh stated that Intel's progress in leading-edge chips has positioned the company to take Samsung's spot as the world's second-largest foundry behind Taiwan Semiconductor Manufacturing Company.
In technical terms, Vinh reported that Intel's yields in the 18A-node chipmaking process, which operates at a scale of 1.8 nanometers, have reached 60%. This is below the 80% yields achieved by TSMC but better than the 40% yields KeyBanc estimates for Samsung.
Vinh noted that hyperscalers including Amazon Web Services and Meta are evaluating Intel's chip package for custom chip projects. Apple has already used Intel's 18A process node for lower-end chips in MacBooks and iPads and is considering Intel chips for future iPhones.
According to Vinh, Intel is nearly sold out of its server central processing units for the year, which could allow the company to increase prices for those units by up to 15% this year. S&P Global Market Intelligence data shows Intel's Data Center and Artificial Intelligence unit is currently its third-largest by revenue but second most profitable.
President Trump praised Intel's progress in a Truth Social post this week. "The United States government is proud to be a shareholder of Intel," the president said. "Our country is determined to bring leading-edge chip manufacturing back to America, and that is exactly what is happening." Last year, President Trump attempted to oust new CEO Lip-Bu Tan before changing his position and leading the government to take a 10% stake in Intel.
The Wall Street Journal reported this week that TSMC may soon significantly expand its operations in Phoenix, Arizona, where it opened a chip foundry in 2024.