Intel (NASDAQ:INTC) has entered a critical phase of reinvention. Since CEO Lip-Bu Tan assumed leadership in March, the company has shifted from a “growth at any cost” approach to focusing on disciplined execution and efficient capital use. Beginning in April, Intel streamlined its organizational structure by cutting management layers by roughly 50% and implemented a 15% workforce reduction to create a more agile company. These moves are designed to replace bureaucracy with direct customer focus and to revive Intel’s engineering-driven culture.
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The company has also been fortunate in that it has gotten a combination of unexpected support from the U.S. government, Nvidia, and Softbank. These investments, along with proceeds from Altera and Mobileye, have strengthened the company’s balance sheet. In Q3, Intel’s net debt fell to $15.6 billion from $29.6 billion in the previous quarter. During the period, the company received $5.7 billion from the U.S. government, $2 billion from SoftBank, $4.3 billion from selling a 51% stake in Altera, and $900 million from the Mobileye stake sale. Additionally, Intel repaid $4.3 billion of debt during the quarter and plans to continue prioritizing deleveraging by addressing upcoming maturities throughout 2026.
Raymond James analyst Simon Leopold expects Nvidia’s $5 billion investment to close by the end of 4Q25, and thinks that the improved balance sheet and new management “provide reasons for hope.” Yet, Leopold also believes execution risk “remains substantial, while Intel lags pure play foundry competitors like TSMC and Samsung Foundry on several fronts.”
Intel’s near-term results also continue to face headwinds from restructuring expenses and tariffs, although revenue has stabilized and that has been accompanied by early indications of operational progress. Key execution milestones over the next year include ramping Panther Lake (18A) to high-volume production, attaining at least one major external foundry customer for 14A, completing the Altera transaction while advancing deleveraging efforts, and expanding AI products and software through partnerships with Nvidia and other ecosystem collaborators.
While the chip giant has outlined long-term targets, aiming for a gross margin above 50% and an operating margin above 20%, it hasn’t specified a timeline. In Leopold’s modeling, reaching these goals would require the foundry segment to approach break-even with sales exceeding $54 billion, which the 5-star analyst considers unlikely before 2027. Assuming a share count around 5 billion, these targets translate to an EPS of roughly $2.00–2.10 at best. Given Intel’s median P/E of 23x over the past five years, this would suggest a fair value share price near $49, which Leopold views as a bullish scenario.
“Shares are trading well-above median historic earnings multiples, and our sum-of-the-parts suggests that shares are fairly valued,” the analyst summed up.
Accordingly, Leopold assigns INTC stock a Market Perform (i.e., Neutral) rating, and doesn’t put a price target on it. (To watch Leopold’s track record, click here)
Other analysts do. Their average price target comes in at $35.61, suggesting shares will stay range-bound for the foreseeable future. Altogether, with 26 Holds, 6 Sells, and 3 Buys, the Street’s overall view settles at a Hold. (See INTC stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.