Intel's stock levels mean investors believe its foundry business will succeed: Bernstein's Rasgon

June 19, 2026 - 02:11

Stacy Rasgon, a semiconductor analyst at Bernstein, told CNBC's "Power Lunch" that current stock valuations suggest investors are betting Intel's foundry business will eventually succeed. Rasgon, joined by Wedbush Securities' Dan Ives, discussed the chipmaker's ambitious plans to manufacture chips on U.S. soil and what that means for the broader industry.

Rasgon noted that while Intel faces significant execution risks in its turnaround, the market is already pricing in a positive outcome for its foundry operations. He argued that the stock's current levels reflect a belief that Intel will become a viable third player in the global chip fabrication market, alongside TSMC and Samsung. The analyst cautioned, however, that the road ahead remains long and capital-intensive.

The conversation also touched on Apple's recent price increases across its product lineup. Ives weighed in, saying the hikes are a calculated move to offset rising component costs without significantly denting demand. He described Apple's pricing power as "unmatched" in consumer tech.

Both analysts agreed that Intel's domestic manufacturing push, supported by federal incentives, could reshape the U.S. semiconductor landscape. But they stressed that investors should watch for tangible milestones in the foundry business before getting too optimistic. The discussion ended with a note of caution: Intel's success is far from guaranteed, and the stock's current optimism may be premature.