Intel (INTC) AI Stock Analysis

• Market Cap: $87.85B
• Dividend Yield: 2.48%
• Average Volume (3M): 73.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -3.97%
• EPS Growth: -562.40%
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 0.13
• Shares Outstanding: 4,362,000,000
• 10 Day Avg. Volume: 93,908,955
• 30 Day Avg. Volume: 73,368,640
• PEG Ratio: 2.88
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.67
• Enterprise Value/Market Cap: 3.30
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 17.27
• Enterprise Value/Ebitda: 19.95
• 1Y Price Target: $21.30
• Price Target Upside: 5.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 31

• Rating: 49 Neutral
• Price Target: $20.00 ▼(-0.70%Downside)

Intel's overall stock score reflects significant financial challenges, with negative income and cash flow under pressure. While technical analysis shows weak momentum, the earnings call and strategic leadership changes offer some optimism. However, macroeconomic uncertainties and competitive pressures continue to weigh heavily on the outlook.

Positive Factors

Investor Relations

The presence of high-level executives like the Executive Vice President in the investor meeting suggests a strong commitment to investor relations.

Strategic Execution

Intel's process changes, such as copy-exact and capex discipline, are viewed positively for improving strategic execution.

Technology Differentiation

The Intel 14A process, leveraging PowerDirect and advanced packaging capabilities, is highlighted as a key technology differentiator.

Negative Factors

Competitive Environment

The decision to shift the AI accelerator Falcon Shores to an internal-only product reflects the difficult competitive environment Intel faces in AI acceleration.

Guidance and Margins

Optimism on near-term numbers was quickly dashed with guidance below consensus, attributed to an uncertain macro-environment and tariff-related demand uncertainty.

Leadership and Strategy

Without a permanent CEO in place, there is a lack of clarity on the long-term strategic direction of Intel.

Intel Business Overview & Revenue Model

Company Description

Intel Corporation is a leading global technology company known for its semiconductor manufacturing and design. Headquartered in Santa Clara, California, Intel is a major player in the technology sector, primarily focusing on designing and producing microprocessors, integrated graphics chips, and other semiconductor products that power a wide range of computing devices. The company's core products include processors for personal computers, data centers, and Internet of Things (IoT) devices, as well as memory solutions and programmable semiconductors.

How the Company Makes Money

Intel makes money primarily through the sale of its semiconductor products, with a significant portion of its revenue derived from the sales of microprocessors used in personal computers and data centers. The company operates through several business units, including the Client Computing Group, which focuses on consumer and commercial PC platforms, and the Data Center Group, which provides high-performance processors for server, network, and storage platforms. Additionally, Intel generates revenue through its Internet of Things Group, offering processors and system-on-chip solutions for IoT applications, and the Non-Volatile Memory Solutions Group, which develops memory and storage products. Intel also engages in strategic partnerships and collaborations with other technology firms to enhance its product offerings and market reach, contributing to its revenue streams.

Intel Financial Statement Overview

Summary

Intel faces significant financial challenges, including declining revenues and profitability, as evidenced by negative net income and margins. The balance sheet is relatively solid with manageable leverage, but cash flow difficulties due to high capital expenditures are notable.

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
1.50B	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
25.03B	22.06B	25.03B	28.34B	28.41B	23.89B
	Total Assets
191.57B	196.49B	191.57B	182.10B	168.41B	153.09B
	Total Debt
49.28B	50.01B	49.28B	42.05B	38.10B	36.40B
	Net Debt
42.20B	41.76B	42.20B	30.91B	33.27B	30.54B
	Total Liabilities
81.61B	91.45B	81.61B	78.82B	73.02B	72.05B
	Stockholders Equity
105.59B	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: 20.14
• 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 20.14 is below the 20-day moving average (MA) of 20.54, below the 50-day MA of 20.46, and below the 200-day MA of 21.63, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 37.88 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
NVDA	85 Outperform	$3.46T	45.73	115.46%	0.03%	86.17%	81.36%
AMD	81 Outperform	$188.34B	85.15	3.90%	―	21.71%	99.00%
AMAT	81 Outperform	$136.90B	20.76	36.37%	1.08%	6.12%	-5.66%
ADI	77 Outperform	$111.67B	61.26	5.21%	1.76%	-6.17%	-14.16%
TSM	77 Outperform	$904.82B	27.16	32.11%	1.30%	35.45%	47.97%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
INTC	49 Neutral	$87.85B	―	-18.66%	2.48%	-3.97%	-562.40%

Intel Corporate Events

Intel Stockholder Meeting Approves Key Proposals

At Intel Corporation’s annual stockholder meeting on May 6, 2025, 76.3% of outstanding shares were represented. Key outcomes included the election of 11 directors, approval of executive compensation, and amendments to the 2006 Equity Incentive Plan. However, stockholder proposals for ethical impact assessment, charitable giving report, and shareholder rights to act by written consent were not approved.

Intel’s EVP Resignation Announced April 2025

Christopher Schell, Intel‘s Executive Vice President and Chief Commercial Officer, announced his resignation on April 28, 2025, effective June 30, 2025, to pursue another career opportunity. This departure may impact Intel’s sales, marketing, and communications strategies, potentially influencing its market positioning and stakeholder relationships.