Citi sees positive signs for Intel despite lingering risks

Intel's CEO, Pat Gelsinger, received positive feedback for the company's third-quarter guidance and prepayment for its foundry business, but investment firm Citi believes Intel is still at risk. Citi analyst Christopher Danely suggests that Intel should exit the foundry business due to limited chances of success. Gelsinger announced a prepayment from an unidentified customer for Intel's upcoming technology node, 18A, scheduled for production in the second half of next year. Citi also expresses concerns about Intel and AMD's data center businesses potentially missing their second-half targets due to increasing focus on AI demand led by Nvidia. Intel's shares rose around 1% in pre-market trading.