Intel could be even with TSMC in manufacturing by 2025: Citi By

Citi analysts are Institutional Foreign Exchange Tradingturning more positive on Intel's (NASDAQ:) manufacturing capabilities, believing the company could be competitive in manufacturing with TSMC by the second half of 2025.

This outlook stems from a recent meeting with Intel, where Citi gained confidence in Intel's "five nodes in four years" strategy.

However, Citi explains that Intel's roadmap may be more like "three nodes in four years" due to similarities between certain generations (e.g., Intel 7 and 10nm).

Citi also sees an advantage in Intel's approach of spreading innovations across different nodes, contrasting it with TSMC's strategy of cramming multiple advancements into a single node (e.g., 2nm). This, according to Citi, might be delaying TSMC's progress at the 3nm level.

Looking ahead, Citi's optimistic scenario suggests Intel's 18A process could be on par with TSMC's 2nm by 2H25. Despite this potential parity in manufacturing, Citi remains neutral on Intel due to concerns about the company's ambitious guidance for the latter half of 2024 and the long-term profitability of its foundry business.

Citi maintains a neutral rating on Intel with a price target of $35, which they acknowledge is above Intel's historical average but still below the broader semiconductor industry valuation.

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