Citrini View: Intel's Stock Offering Sends a Positive Signal, Foundry and EMIB Business Advancing Steadily

BlockBeats News, August 14th, Citrini analyst Jukan pointed out that Guosen Securities' latest overseas electronics research report believes that Intel's $200 billion stock issuance sends a positive signal. CEO Pat Gelsinger and his family directly subscribed to approximately $120 million, demonstrating management's confidence in the company's prospects. Guosen Securities reiterated Intel's "Buy" rating with a $136 price target and raised the EPS expectations for 2026 and 2027 by 3% and 1%, respectively.

Jukan quoted the research report, stating that Intel's offering size was increased from the initial $150 billion to $200 billion, with institutional demand reportedly exceeding $100 billion. The issue price was $95, and all the oversubscription rights have been exercised. Guosen Securities believes that management's subscription is expected to further support Intel's 2027 capital expenditures.

The report estimates that Intel's foundry business will achieve breakeven in the fourth quarter of 2027, and profit margin leverage will further increase in 2028. The current 18A yield is estimated to be around 80%, Clearwater Forest has entered mass production ramp-up, and Apple's 14A high-volume production progress is also worth noting.

In addition, the EMIB customer base continues to expand. AWS Trainium3 is expected to adopt EMIB-T in 2027, Google's Humufish/Triggerfish is expected to enter a scale-up phase from the second half of 2027 to 2028, and AWS and Microsoft's ASICs may also adopt EMIB in 2028. Guosen Securities has thus raised Intel's 2027 and 2028 backend business revenue expectations to $1.1 billion and $7 billion, respectively, and maintained the $136 price target after accounting for the dilution impact of the issuance.