Intel Corporation INTC recently announced the onboarding of two new defense industrial base (DIB) customers, Trusted Semiconductor Solutions and Reliable MicroSystems, under the U.S Government’s Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) initiative. 

Launched in October 2021, RAMP-C focuses on creating an ecosystem that enables U.S.-based commercial semiconductor foundries to fabricate leading-edge custom integrated circuits and microelectronics for both DoD (Department of Defense) and commercial applications. The program aims to strengthen the supply chain security of advanced semiconductor solutions and bolster the U.S. leadership position in integrated circuit design, manufacturing and packaging.

Over the last few years, Intel has collaborated with DoD across several programs and also played a crucial role in advancing the RAMP-C initiative through different phases. In the initial two phases, Intel made significant investments in the development of intellectual property and expanded the partner ecosystem by onboarding industry leaders. Boeing and Northrop Grumman were the first prominent DIB customers onboarded by Intel. 

Through this program, commercial foundry customers and DoD gain early access to Intel’s state-of-the-art semiconductor technology, including 18A process technology and Intel Foundry’s advanced packaging capabilities. This allows DIB customers to effectively design and develop advanced chips for defense applications.

In April 2024, Intel Foundry was awarded by DoD the final phase of the RAMP-C program, which focuses on tape out and testing of early product prototypes. It showcases the preparedness of Intel 18A process technology in high-volume manufacturing. The recent onboard of Trusted Semiconductor Solutions and Reliable MicroSystems will significantly accelerate chip development and strengthen the domestic semiconductor ecosystem.

Will This Development Drive Intel’s Share Performance?

Intel has been a long-trusted strategic partner of DoD. Amid increasing geopolitical tension worldwide, the U.S. Government is placing a stronger emphasis on semiconductor self-sufficiency. Intel is the only major U.S.-based designer and manufacturer of advanced semiconductor solutions, and steady advancements in the RAMP-C program have demonstrated Intel’s capabilities in semiconductor innovation. The recent development in RAMP-C program will solidify its position as a key player in the U.S. Government’s semiconductor initiative.

However, in recent quarters, the company has been struggling with intensifying competition in the server, storage and networking markets. The company has been also facing stiff competition from AMD in the commercial PC market.

INTC Stock’s Price Movement

Shares of Intel have declined 55.4% in the past year against the industry’s growth of 96%.

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INTC's Zacks Rank and Key Picks

Intel currently carries a Zacks Rank #3 (Hold).

Keysight Technologies, Inc. KEYS carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications, and rising adoption of driver-assistance systems globally.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Zillow Group, Inc. ZG carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.

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