Intel Valued Like AMD, TSMC Despite Margin and AI Gaps

Intel shares jumped after President Donald Trump said Apple would work with Intel to design and build chips in the United States. The stock reached a year-to-date price of $134 and, on an enterprise value-to-sales basis, market valuations put Intel in line with AMD and Taiwan Semiconductor Manufacturing Co.

Wedbush senior analyst Matt Bryson urged caution about valuing Intel the same as those peers. He pointed to a persistent profit gap and wrote: “Taiwan Semi has well over 60% gross margins,” while Intel’s gross margin remains near 40 percent. Bryson added that TSMC’s planned ramp of a 2-nanometer node is not fully reflected in current estimates.

On product position, Bryson highlighted differences with AMD. He said AMD holds an architectural edge in servers and has accelerators where Intel has limited presence, noting that AMD’s MI-series accelerators are “a place where INTC doesn’t play.” Those accelerators are a key component of demand in artificial-intelligence infrastructure.

Intel has updated variants of its 18A process and is promoting an open foundry strategy to attract external customers. Bryson wrote that Intel’s role as both a chip designer and an open foundry remains unproven until manufacturing performance narrows the gap with TSMC and Intel shows competitiveness in high-growth accelerator markets.

Investors bid the stock higher on expectations that reshoring and new design wins could expand Intel’s revenue outlook. The Apple remark and process-node updates supported optimism that Intel’s top line could improve next year, while sector-wide demand also benefits AMD and TSMC.

Wedbush retains a Hold rating on Intel with a $60 price target, citing margin differences and Intel’s limited position in AI accelerators as reasons for its cautious stance.

Background: Intel is rebuilding after years of manufacturing setbacks. The company has invested in new fabrication plants and updated process roadmaps and is seeking outside customers for its foundry capacity. AMD has expanded in server CPUs and accelerators, and TSMC remains the dominant pure-play foundry. Analysts use gross-margin trends and product positions in AI accelerators to compare the three firms.