New chip-supply deals and cheerleading from President Trump are giving Intel momentum it hasn’t had in years, but the recent jump in the company’s stock belies years of technical missteps that investors shouldn’t be quick to forget.
Intel has made some progress in getting out of its technical struggles under CEO Lip-Bu Tan, but it is far from clear that the company has overcome its manufacturing woes.
The company has started to ship chips made using its cutting-edge “18A” manufacturing process, but it is unclear whether these chips will be financially viable.
Intel won’t say what its yields are for its 18A chips, but Chief Financial Officer David Zinsner said they aren’t yet helping the company financially.
The company’s agreements with Nvidia, Google, and Apple may not be as lucrative as they seem, and Intel’s history of broken promises is a concern for investors.
Investing in Intel is a momentum play, with the hope that Trump will help drum up business for the company, but whether Intel can step up its manufacturing prowess enough to make those orders pay is another matter.
