Intel's (INTC) AI and Chip Future May Rely on TSMC, Say Analysts

Intel Corporation (NASDAQ:INTC) is one of the AI Stocks in the Spotlight Right Now.  On July 22, Loop Capital initiated coverage of the stock with a “Hold” rating and $25 price target. According to the firm, TSMC’s advanced node manufacturing is better than Intel’s.

Moreover, the firm believes that TSMC is the “obvious manufacturing partner” for Intel to make its products more competitive with AMD, Nvidia, and Arm. The firm has, at the same time, warned that if Intel Foundry can’t get enough volume from Intel products, then the company may struggle to cover its fixed costs.

This is why it is likely to be more constructive for Intel shares if it shifts away from the foundry.

Intel Corporation (NASDAQ:INTC) designs and sells computing hardware, semiconductor products, and AI-driven solutions for various industries.

While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 10 AI Stocks Analysts Are Tracking Closely.

Disclosure: None.