If you look at your PC or notebook, it may have an Intel logo on it. A few years ago, these stickers adorned many computers. However, Intel has fallen further behind in chip technology in recent years.

TSMC and Samsung have overtaken Intel. While TSMC and Samsung can produce powerful 3-nm chips, the best Intel has to offer is 7-nm. Smaller manufacturing technologies like 3-nm are considered superior to 7-nm. With smaller structure widths, more transistors can be accommodated on a chip. This means that chips using 3-nm technology can be built to be more powerful and energy-efficient than those using 7-nm.

Will 2-nm chips bring about a turning point? Intel’s latest purchase, a high NA EUV lithography machine from ASML, could bring about a turning point. This technology will allow the industry veteran to produce 2-nm chips in the future. Advances in manufacturing technology allow chip designers to develop increasingly complex and powerful chips. A more advanced manufacturing technology like 2-nm offers more room for future innovations and performance improvements. By transitioning to a more advanced manufacturing technology early on, Intel could have a competitive advantage by offering more powerful and energy-efficient products.

Expanding contract manufacturing. The chip giant still generates nearly all of its revenue from selling its own chips. However, this is likely to change in the future as Intel expands its contract manufacturing. This could further boost the chip giant’s data center and AI business.

Intel on a weekly chart – ISIN: US4581401001

Source: https://www.aktienscreener.com

Evaluation and technical analysis. Due to the increasing profits, the Intel stock has a 2026e P/E ratio of 17. The dividend yield is expected to be 2.9% by then. The chip manufacturer’s stock performed well last year, but it was far from the 40-week line (blue) during that time. This year, there was a correction. A relevant support level (orange line) is just above the GD-40 on a weekly basis.

Conclusion. The industry veteran in the semiconductor industry has the chance to return to the limelight with the advanced high NA EUV manufacturing technology. This comeback could be enough to further invigorate the stock.