Intel Corp (INTC)

[VeeCee]

I think it could be Cisco as an official customer.
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Intel (NASDAQ: INTC) is getting closer to a material foundry design win, according to RBC Capital analyst Doug Freedman.
"We believe the move into a foundry relationship is a positive, highlighting Intel's process technology lead," Freedman. "It may also go to explain the recent significant capital spending plans."
That said, the analyst notes that the need to seek outside designs to leverage the process technology is something Intel has not had to do in the past. "In signing a foundry customer, Intel must be careful to build products that are complementary and not competitive with internal aspirations."
From a business model standpoint, Freedman expects average gross margins to decline while revenues accelerate. The net result would be faster earnings growth with stable operating margins, he said. "Success in the foundry business would be defined as incremental revenues in excess of $2 billion per year."
In the past Apple (Nasdaq: AAPL) was mentioned as a potential foundry customer for Intel.