Intel foundry customer may be a 'whale,' Citi says
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Late last month, Intel (NASDAQ:INTC) CEO Pat Gelsinger disclosed that the company had received a prepayment for its foundry business to use upcoming technology node, 18A, which is scheduled to go into production in the second-half of next year. 
Now, investment firm Citi has shed more light on the size of that potential customer.
"The customer prepayment is from a potential 'whale,' analyst Christopher Danely wrote in an investor note. Danely added that Intel (INTC) is looking to secure one more "whale", but did not give any update on which companies Intel is working with.
Earlier this year, Intel (INTC) CFO David Zinsner said he expects the company to announce a major foundry customer later this year as the semiconductor giant attempts to compete with the likes of Taiwan Semiconductor (TSM), GlobalFoundries (GFS) and Samsung (OTCPK:SSNLF) in chip manufacturing for other companies.
Danely recently reiterated his stance that Intel should exit the foundry business, stating it has "little chance of succeeding."
Intel's Zinsner, who spoke at Citi's technology conference on Wednesday, said that "real revenue" is expected from the foundry business in either 2026 or 2027 and while gross margins will be below the company's historical range, they will still provide "attractive" operating margins. 
Zinsner also said the company's manufacturing processes are still on track, as the company looks to create five nodes in four years.
Danely, who has a neutral rating and $34 price target on Intel (INTC), also pointed out that Intel's (INTC) AI product pipeline is growing. Its Gaudi product is now over the $1B figure that was disclosed on the company's most recent earnings call, with margins being accretive to the corporate average.

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