Intel Signs Fortinet as Major Customer in Foundry Business
Intel has secured Fortinet, a leading cybersecurity company with nearly $7 billion in annual revenue, as a major customer for its foundry business. This marks the first publicly named client for Intel's chip manufacturing services and signals growing interest from large companies despite competition from dominant players like Taiwan Semiconductor Manufacturing (TSMC). The deal is seen as positive progress for Intel’s efforts to expand this segment. Intel recently reported second-quarter revenue of $16.1 billion, with its foundry business generating $5.8 billion—a 31% year-over-year increase—though it still posted a loss of $2.1 billion. While the company is gaining traction in the market, analysts caution that Intel's stock may already reflect much of this optimism and could face downside risks due to an elevated forward P/E ratio above 100.