Intel (INTC) AI Stock Analysis

• Market Cap: $92.36B
• Dividend Yield: 2.34%
• Average Volume (3M): 112.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: -2.08%
• EPS Growth: -1212.72%
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 48
• Industry: Semiconductors and Equipment
• EPS (TTM): -4.37
• Shares Outstanding: 4,330,000,000
• 10 Day Avg. Volume: 112,634,989
• 30 Day Avg. Volume: 112,731,174
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.74
• Price to Cash Flow (P/CF): 7.30
• 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: $22.69
• Price Target Upside: 9.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 31

Intel's overall stock score reflects significant financial and operational challenges, notably declining revenues and profitability coupled with increasing leverage. The technical analysis shows a bearish trend as the stock price remains below key moving averages. Although the earnings call highlighted some positive developments such as exceeding revenue expectations and progress in the foundry services, ongoing pressures in the AI data center market and competitive landscape present notable risks. Valuation metrics further highlight concerns, with a negative P/E ratio indicating poor earnings performance, though a reasonable dividend yield offers some relief for investors.

Positive Factors

Government Policy

Intel's foundry business is potentially gaining momentum under a renewed push by the Trump administration to bring AI chip production to the US.

Leadership and Strategy

New leadership seems more cognizant of the hurdles, with decisions and commitments more grounded in reality than before, potentially offering a clearer lens to evaluate the situation.

Negative Factors

Market Share and Competition

Intel is facing multiple challenges including loss of server-AI-PC share, lacking AI traction, and the transition to a foundry model, which are all pressuring execution.

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 challenges as evidenced by declining revenues and profitability. Despite maintaining a strong equity base, increased leverage and negative cash flows highlight potential areas of concern. Strategic adjustments are necessary to address operational inefficiencies and improve financial health.

Income Statement

Intel's revenue has been declining over the past three years, with a significant drop from $79.02 billion in 2021 to $53.10 billion in 2024. Gross profit margin has also decreased, indicating increased cost pressures. The company reported a net loss in 2024, leading to a negative net profit margin. The negative EBIT and EBITDA margins in 2024 highlight operational challenges.

Balance Sheet

The balance sheet shows a stable equity ratio over the years, with stockholders' equity remaining robust. However, the debt-to-equity ratio has increased slightly, indicating higher leverage. The return on equity has deteriorated due to negative net income, which poses a risk if not addressed.

Cash Flow

Operating cash flow has decreased, reflecting operational challenges. However, the company has maintained cash reserves. Free cash flow remains negative, suggesting ongoing capital expenditure or cash flow management issues. This is a concern if the trend continues without strategic adjustments.

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

Intel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 20.81 is below the 20-day moving average (MA) of 22.78, below the 50-day MA of 21.17, and below the 200-day MA of 24.27, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, 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
QCOM	76 Outperform	$170.83B	16.51	41.96%	2.17%	12.13%	36.17%
NVDA	75 Outperform	$2.83T	39.48	119.18%	0.03%	114.20%	146.26%
AMD	73 Outperform	$163.26B	100.43	2.89%	―	13.69%	91.75%
TXN	70 Outperform	$177.37B	37.50	28.25%	2.73%	-10.72%	-26.60%
AVGO	67 Neutral	$881.52B	151.95	13.46%	1.16%	43.99%	-62.55%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
INTC	48 Neutral	$92.36B	―	-18.31%	2.34%	-2.08%	-1212.72%

Intel Corporate Events

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.