UBS is Bullish on Intel. Intel Foundry is starting to look more credible!
UBS just dropped a note on Intel that should interest $INTC bulls.
The $20B+ equity raise gives Intel a much stronger bridge through 2027-28, right when foundry spending is about to accelerate.
The interesting part is that Intel may not have to fund all of it alone.
UBS expects pre-payments and commitments from new foundry customers, with names like Google, Apple, AMD, SpaceX and others potentially helping finance the buildout.
Capex could move from around $20B in 2026 to $28-30B in 2027, then into the $40B range by 2028-29.
So yes, cash burn will stay heavy for a while. UBS only expects FCF to turn positive around 2029.
But the foundry side keeps getting more interesting.
UBS still sounds bullish on Intel’s 14A process, especially on yields and the wider process window versus 18A, which could make it much more attractive to outside customers.
They kept a Neutral rating and cut the price target to $112 because of concerns around Intel’s product business.
But the trend is pretty clear:
More customers are showing interest.
More capital is coming in.
And Intel Foundry is starting to look a lot more credible than it did a year ago.
Are you buying the foundry turnaround?