Intel Corporation relies on outsourcing revenue to support its business, while Wells Fargo & Company sees potential in AMD seizing market share.

After Intel Corporation (INTC.US) submitted its annual 10-K report including fourth quarter performance, Wells Fargo & Company pointed out that the external foundry revenue performance of Intel Corporation as a semiconductor giant is particularly noteworthy, and this situation may bring potential benefits for AMD (AMD.US). As of December 27, 2025, Intel Corporation's foundry business revenue reached $4.51 billion, with total revenue for the same period at $13.67 billion. In response to this financial performance, Wells Fargo & Company analyst Aaron Rex gave Intel Corporation a "hold" rating and set a target price of $45. In a report to clients, Wells Fargo & Company analyst Aaron Rex stated that Intel Corporation's annual external foundry revenue reached $307 million, with fourth quarter revenue alone at $222 million, showing significant growth compared to $159 million in the same period in 2024. However, Rex added that this growth was partially due to Intel Corporation selling part of its IAT Automobile Technology business to private equity firm Yinhu in September 2025 - after the completion of the transaction, IAT Automobile Technology is no longer included in Intel Corporation's consolidated financial statements, and this change contributed to the incremental revenue in the fourth quarter. Furthermore, Aaron Rex, an analyst at Wells Fargo & Company, highlighted in his interpretation of the 10-K report that Intel Corporation's server CPU shipments in 2025 increased by 9% year-on-year, but the average selling price decreased by 4% year-on-year. This price fluctuation is mainly due to two factors: first, the proactive pricing strategy adopted by the company in the first half of the year; second, structural changes caused by the increased proportion of low-core products. Rex further analyzed that although server CPU shipments in the fourth quarter achieved an 8% year-on-year growth, the growth rate was lower than the peak level of 13% in the second quarter and remained steady with the third quarter. Rex further analyzed, "Although we have not yet obtained preliminary estimates of server shipments in the fourth quarter of 2025, we note Micron's (MU.US) optimistic forecast for server shipments in the 2025 calendar year - an increase of about 15% year-on-year, reflecting strong demand acceleration in the second half of 2025; Meanwhile, Gartner data shows that the industry only achieved a 1% year-on-year growth in the first three quarters of 2025. Combining the above information, we estimate that server shipments in the fourth quarter of 2025 are expected to achieve a 15% to 17% year-on-year growth. Based on this, we predict that Intel Corporation's Xeon CPU shipments in the fourth quarter will increase by 8% year-on-year, a performance that makes us more optimistic about the growth prospects of AMD's server shipments in the same period." As of the Friday closing, Intel Corporation's stock price plummeted by more than 17%, while AMD's stock price rose by over 2%.