Intel working on direct to OEM foundry deal with Cisco, says Piper Jaffray

Piper Jaffray says it heard from several contacts that Intel (INTC) is working on a direct to OEM foundry partnership with Cisco (CSCO) to supply custom silicon. Piper does not expect near-term revenue from the deal, but views it as a $1B opportunity and a step in the right direction for Intel. Piper adds that this would be Intel’s first direct to OEM foundry deal. The firm keeps a Neutral rating on shares of Intel with a $22 price target.