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Intel (INTC)
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Intel (INTC) AI Stock Analysis

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Intel

(NASDAQ:INTC)

52Neutral
Intel's overall stock score reflects significant challenges in financial performance, with declining revenues and profitability. While technical indicators show mixed signals, the negative P/E ratio highlights valuation concerns. The earnings call and the appointment of a new CEO provide some positive sentiment, but operational and competitive pressures remain key risks.
Positive Factors
Innovation and Culture
The focus on creating a startup culture and a culture of innovation at Intel is seen as a breath of fresh air.
Partnerships and Collaborations
Intel is trading higher post an article from The Information that the company has reached a preliminary agreement with TSMC regarding a JV to operate Intel's fabs.
Product Development
Intel's Gaudi 3 AI Accelerator performance was highlighted, showing significant cost efficiency and performance improvements for various tasks compared to competitors.
Negative Factors
AI Portfolio
Despite expectations for AI market growth, Intel currently lacks a competitive AI portfolio.
Competitive Pressure
Risks for Intel include continued market share losses against both AMD and non x86 architectures, continued delays in new node migration, and continued mis-execution in the company’s longer-term product roadmap.
Foundry Business
Given the highly unlikely chance of Intel merchant foundry succeeding and subsequent drag on cash flow, analysts continue to believe Intel would be best served by exiting the merchant foundry business.

Intel (INTC) vs. S&P 500 (SPY)

Intel Business Overview & Revenue Model

Company DescriptionIntel 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 MoneyIntel 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
45
Neutral
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
55
Neutral
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
50
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
53.10B54.23B63.05B79.02B77.87B
Gross Profit
17.34B21.71B26.87B43.81B43.61B
EBIT
-11.68B93.00M2.33B19.46B23.68B
EBITDA
1.20B11.24B15.61B33.87B36.12B
Net Income Common Stockholders
-18.76B1.69B8.01B19.87B20.90B
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.06B25.03B28.34B28.41B23.89B
Total Assets
196.49B191.57B182.10B168.41B153.09B
Total Debt
50.01B49.28B42.05B38.10B36.40B
Net Debt
41.76B42.20B30.91B33.27B30.54B
Total Liabilities
91.45B81.61B78.82B73.02B72.05B
Stockholders Equity
99.27B105.59B101.42B95.39B81.04B
Cash FlowFree Cash Flow
-15.66B-14.28B-9.62B9.13B20.93B
Operating Cash Flow
8.29B11.47B15.43B29.46B35.38B
Investing Cash Flow
-18.26B-24.04B-10.23B-25.17B-20.80B
Financing Cash Flow
11.14B8.51B1.11B-6.21B-12.92B

Intel Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.85
Price Trends
50DMA
22.30
Negative
100DMA
22.00
Negative
200DMA
23.40
Negative
Market Momentum
MACD
0.18
Positive
RSI
44.44
Neutral
STOCH
14.40
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 19.85 is below the 20-day moving average (MA) of 22.96, below the 50-day MA of 22.30, and below the 200-day MA of 23.40, indicating a bearish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INTC.

Intel Risk Analysis

Intel disclosed 36 risk factors in its most recent earnings report. Intel reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Intel Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$103.14B16.6135.19%1.26%4.45%-10.01%
75
Outperform
$2.30T32.10119.18%0.04%114.20%146.26%
TSTSM
74
Outperform
$734.69B20.8429.96%1.32%29.98%35.76%
AMAMD
72
Outperform
$138.97B85.492.89%13.69%91.75%
ADADI
71
Outperform
$81.64B52.494.43%2.28%-19.28%-44.00%
57
Neutral
$18.54B9.84-14.38%2.71%5.07%-23.65%
52
Neutral
$86.56B-18.31%2.52%-2.08%-1212.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INTC
Intel
19.85
-17.74
-47.19%
AMD
Advanced Micro Devices
85.76
-84.14
-49.52%
ADI
Analog Devices
164.60
-28.88
-14.93%
AMAT
Applied Materials
126.95
-80.34
-38.76%
NVDA
Nvidia
94.31
7.21
8.28%
TSM
TSMC
146.80
5.56
3.94%

Intel Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: -0.80% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Intel beat its revenue and EPS guidance for Q4 2024 and made progress in its Intel Foundry Services. However, challenges remain in the AI data center market, competitive pressures are affecting margins, and significant financial losses in the foundry segment persist. The company is focusing on product innovation and partnerships to improve its market position.
Highlights
Revenue and EPS Beat Expectations
Intel delivered revenue, gross margin, and EPS above guidance for Q4 2024. Revenue was $14.3 billion, up 7% sequentially, which was at the high end of the range provided in October.
Intel Foundry Progress
Intel Foundry achieved key grant-related milestones, receiving $1.1 billion in Q4 and an additional $1.1 billion in January from the U.S. Department of Commerce, as part of a grant agreement up to $7.86 billion.
Positive Market Position in AI PC CPUs
Intel maintained a strong position in the AI PC CPU market, with plans to ship more than 100 million systems by the end of 2025.
Panther Lake and Nova Lake Launch
Intel is on track to launch Panther Lake, its lead product on Intel 18A, in the second half of 2025, with Nova Lake planned for 2026, promising better performance and margins.
Lowlights
Weakness in AI Data Center Market
Intel is not currently participating in the cloud-based AI data center market in a meaningful way and has tempered expectations on Falcon Shores, focusing instead on Jaguar Shores.
Revenue Decline and Market Competition
Guidance for Q1 2025 indicates a revenue decline between 11% to 18% sequentially, citing macro uncertainty, seasonality, and increased competition across all segments.
Gross Margin Pressure
Non-GAAP gross margin for Q4 was 42.1%, with expectations for pressure in 2025 due to product mix and increased competition in client and data center segments.
Intel Foundry Financial Losses
Intel Foundry reported a $2.3 billion operating loss in Q4, with overall losses of more than $13 billion in 2024, and is targeting break-even operating income by the end of 2027.
Company Guidance
In the fourth quarter of 2024, Intel exceeded its guidance for revenue, gross margin, and EPS. The company reported $14.3 billion in revenue, a 7% sequential increase, with non-GAAP gross margins reaching 42.1%, surpassing expectations by 260 basis points. This was driven by robust performance in Intel Products, which saw $13 billion in revenue, up 7% sequentially, with strong contributions from CCG, DCAI, and NEX segments. Intel Foundry also reported $4.5 billion in revenue, with an improved operating loss due to an enhanced EUV wafer mix, which grew from 1% in 2023 to over 5% in 2024. Looking ahead, Intel provided Q1 2025 guidance with revenue expectations ranging from $11.7 billion to $12.7 billion, a non-GAAP gross margin of approximately 36%, and break-even EPS. The company continues to focus on improving execution and operational efficiency, with a target to achieve break-even operating income for Intel Foundry by the end of 2027.

Intel Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Intel Appoints Lip-Bu Tan as New CEO
Positive
Mar 14, 2025

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.

Executive/Board Changes
Intel Appoints Michelle Johnston Holthaus as CEO
Neutral
Feb 28, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.