Intel (INTC) AI Stock Analysis

• Market Cap: $87.43B
• Dividend Yield: 2.49%
• Average Volume (3M): 111.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: -3.97%
• EPS Growth: -562.40%
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 62
• Industry: Semiconductors
• EPS (TTM): -4.47
• Shares Outstanding: 4,360,592,000
• 10 Day Avg. Volume: 96,842,454
• 30 Day Avg. Volume: 111,714,022
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.98
• Price to Cash Flow (P/CF): 8.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.27
• Price Target Upside: 6.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 33

Intel is navigating a challenging period marked by financial difficulties, as evidenced by negative income and cash flow figures. While technical analysis shows a bearish trend, the company’s strategic initiatives and leadership changes offer hope for future improvement. The stock's valuation remains a concern, but recent earnings call highlights show promise if macroeconomic challenges can be managed effectively.

Positive Factors

Financial Performance

Intel's Q1 results were good relative to expectations, with revenue and earnings surpassing analysts' predictions.

Innovation and Management

The new CEO, Lip-Bu Tan, is taking rapid actions on costs and trying to reset the company culture.

Product Development

There is a renewed focus on making the best microprocessors in the world, which is seen as a positive step.

Negative Factors

Competition

Intel faces increasing competition and challenges with its AI accelerator roadmap, which may need reevaluation.

Product Launch Delays

The launch timing of Intel's new product, Panther Lake, has been delayed, which may impact future growth expectations.

Revenue Guidance

The company's revenue guidance for the upcoming quarter is well below expectations, reflecting a more conservative and uncertain macroeconomic outlook due to volatile tariff and trade dynamics.

Intel Business Overview & Revenue Model

Company Description

Intel Corporation (INTC) is a leading global technology company primarily engaged in the design and manufacturing of essential semiconductor components. It operates in sectors such as computing, data storage, and network connectivity. Intel's core products include central processing units (CPUs), graphics chips, memory and storage solutions, and network interface controllers, serving a diverse range of industries including personal computing, data centers, and Internet of Things (IoT) applications.

How the Company Makes Money

Intel generates revenue through the sale of its semiconductor products, which are integral to computing and data processing devices. The company's primary revenue streams come from its Client Computing Group, which provides processors for personal computers and mobile devices, and its Data Center Group, which offers processors and solutions for servers and network infrastructure. Intel also earns from its Internet of Things Group, offering chips and related products for connected devices. Additionally, Intel's Non-Volatile Memory Solutions Group contributes to revenue through storage solutions. Strategic partnerships with original equipment manufacturers (OEMs) and technology companies further bolster Intel's earnings, as do investments in research and development to maintain technological leadership in the semiconductor industry.

Intel Financial Statement Overview

Summary

Intel faces significant financial challenges with negative net income, declining revenue, and negative margins. Although the balance sheet shows manageable debt levels and a stable equity position, cash flow difficulties are evident due to high capital expenditures and negative free cash flow. The company must address operational inefficiencies to improve its financial performance.

Income Statement

Intel's income statement reveals a challenging period with negative net income and declining revenue. For the TTM, the gross profit margin stands at 31.68%, which is a decrease from prior years, indicating cost pressure. The net profit margin is negative due to substantial net losses. Additionally, revenue growth is negative, revealing a downswing in sales. EBIT and EBITDA margins are also negative, reflecting operational difficulties and a challenging market environment.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio is approximately 0.50, suggesting a moderate level of leverage. The equity ratio is 51.90%, which indicates a stable capital structure. However, the return on equity is negative due to the net losses, a concern for investors looking for profitability. The company's strong asset base and manageable debt levels provide some stability despite profitability challenges.

Cash Flow

The cash flow statement highlights a negative free cash flow growth rate, mostly driven by significant capital expenditures. The operating cash flow to net income ratio is not favorable due to negative net income, while the free cash flow to net income ratio is also negative. These figures point to a need for improved operational efficiency and better cost management to enhance cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.04B	53.10B	54.23B	63.05B	79.02B	77.87B
	Gross Profit
16.80B	17.34B	21.71B	26.87B	43.81B	43.61B
	EBIT
-9.97B	-11.68B	93.00M	2.33B	19.46B	23.68B
	EBITDA
-1.19B	1.20B	11.24B	15.61B	33.87B	36.12B
	Net Income Common Stockholders
-19.20B	-18.76B	1.69B	8.01B	19.87B	20.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.05B	22.06B	25.03B	28.34B	28.41B	23.89B
	Total Assets
192.24B	196.49B	191.57B	182.10B	168.41B	153.09B
	Total Debt
50.15B	50.01B	49.28B	42.05B	38.10B	36.40B
	Net Debt
41.20B	41.76B	42.20B	30.91B	33.27B	30.54B
	Total Liabilities
92.49B	91.45B	81.61B	78.82B	73.02B	72.05B
	Stockholders Equity
99.76B	99.27B	105.59B	101.42B	95.39B	81.04B
Cash Flow		Free Cash Flow
-12.83B	-15.66B	-14.28B	-9.62B	9.13B	20.93B
	Operating Cash Flow
10.32B	8.29B	11.47B	15.43B	29.46B	35.38B
	Investing Cash Flow
-15.61B	-18.26B	-24.04B	-10.23B	-25.17B	-20.80B
	Financing Cash Flow
7.31B	11.14B	8.51B	1.11B	-6.21B	-12.92B

Intel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTC, the sentiment is Negative. The current price of 20.05 is below the 20-day moving average (MA) of 20.47, below the 50-day MA of 22.25, and below the 200-day MA of 22.60, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 78.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INTC.

Intel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAT	78 Outperform	$123.13B	19.65	35.19%	1.05%	4.45%	-10.01%
NVDA	78 Outperform	$2.71T	36.22	119.18%	0.04%	114.20%	146.26%
AMD	73 Outperform	$157.01B	96.34	2.89%	―	13.69%	91.75%
TSM	72 Outperform	$714.08B	22.30	32.11%	1.17%	35.45%	―
ADI	69 Neutral	$96.51B	62.26	4.43%	1.93%	-19.28%	-44.00%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
INTC	46 Neutral	$87.43B	―	-18.66%	2.49%	-3.97%	-562.40%

Intel Corporate Events

Intel Appoints Lip-Bu Tan as New CEO

On March 10, 2025, Intel Corporation’s Board of Directors appointed Lip-Bu Tan as the new Chief Executive Officer, effective March 18, 2025. Tan, who has extensive experience in the semiconductor industry, previously served as CEO of Cadence Design Systems and has been involved with Intel in various capacities. His appointment is seen as a strategic move to accelerate Intel’s turnaround and leverage growth opportunities. Tan’s compensation package includes a base salary, performance bonuses, and significant equity awards tied to Intel’s stock performance. The appointment marks a leadership transition from interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who will continue in other executive roles.

Intel Appoints Michelle Johnston Holthaus as CEO

On December 1, 2024, Intel appointed Michelle Johnston Holthaus as CEO of the Intel Products business. Her compensation package, effective January 1, 2025, includes a $1,000,000 annual salary, a $2,000,000 cash bonus target, and a $16,000,000 long-term incentive equity award. Additionally, she received a one-time $5,000,000 restricted stock units award. The agreement also provides severance benefits if she resigns under specified conditions within two years of a new CEO’s appointment.