Intel (INTC) AI Stock Analysis

• Market Cap: $107.50B
• Dividend Yield: 0.51%
• Average Volume (3M): 99.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: -3.72%
• EPS Growth: -2120.70%
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 89
• Industry: Semiconductors
• EPS (TTM): -0.10
• Shares Outstanding: 4,377,000,000
• 10 Day Avg. Volume: 133,473,139
• 30 Day Avg. Volume: 99,502,745
• PEG Ratio: <0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.64
• P/FCF Ratio: -5.55
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.57
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: 122.80
• 1Y Price Target: $22.24
• Price Target Upside: -9.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 30

• Rating: 52 Neutral
• Price Target: $22.00 ▼(-10.42% Downside)

Intel's overall stock score is driven by significant financial performance challenges, particularly in profitability and cash flow. While the earnings call and corporate events indicate strategic efforts to address these issues, the technical analysis and valuation suggest a cautious outlook. The company's restructuring and focus on foundry services are positive steps, but the market remains wary of immediate improvements.

Positive Factors

Joint Venture

A joint venture outcome remains likely and would represent a positive catalyst for the stock.

Product Family

Intel's 18A product family is expected to provide a healthy return.

Revenue Performance

Intel posted a fairly positive quarter with a significant revenue upside and beat on EPS.

Negative Factors

Foundry Business

There is greater uncertainty for the future of the Foundry business despite better results.

Manufacturing Costs

High manufacturing costs will likely continue to weigh on Intel's gross margin.

Market Share

Intel continues to lose market share to AMD in the server market.

Intel Business Overview & Revenue Model

Company Description

Intel Corporation (INTC) is a global leader in computing innovation, primarily known for its semiconductor products and microprocessors that power a wide range of computing devices. Founded in 1968, the company operates in various sectors, including data center solutions, Internet of Things (IoT), artificial intelligence (AI), and consumer electronics. Intel's core products include microprocessors for personal computers and servers, chipsets, integrated graphics, and memory solutions, which serve both consumer and enterprise markets.

How the Company Makes Money

Intel generates revenue primarily through the sale of its semiconductor products, including microprocessors and chipsets. The company's key revenue streams include the Client Computing Group, which focuses on PC processors, and the Data Center Group, which provides solutions for data center operations and cloud services. Additionally, Intel earns revenue from its Internet of Things Group and Non-Volatile Memory Solutions Group. Strategic partnerships with major technology firms, such as collaborations with cloud service providers and OEMs (original equipment manufacturers), enhance its market reach and contribute significantly to its earnings. Intel also invests in R&D to innovate and maintain its competitive edge in the rapidly evolving tech landscape.

Intel Financial Statement Overview

Summary

Intel faces significant profitability challenges with negative net income and declining revenue. The balance sheet remains relatively strong with reasonable leverage and a solid equity ratio, but cash flow issues persist with negative free cash flow, raising concerns over liquidity and operational cash generation.

Income Statement

Intel's TTM revenue has slightly decreased from the previous year, indicating a revenue contraction trend. The gross profit margin for TTM stands at 29.76%, showing a substantial decline from historical levels, reflecting deteriorating cost management or pricing pressures. The net profit margin is deeply negative at -38.65%, highlighting significant profitability challenges, further accentuated by a negative EBIT margin of -19.28%. Despite a positive EBITDA margin of 2.10%, overall income statement performance is weak, with substantial negative net income impacting overall profitability.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.52, indicating moderate leverage. The equity ratio is strong at 50.84%, reflecting a solid capital structure. Return on equity is severely negative at -20.95%, pointing to challenges in generating returns for shareholders in the current period. Overall, the balance sheet displays a stable capital base with manageable leverage, but profitability issues are a concern.

Cash Flow

Intel's free cash flow remains negative at -$10.94 billion, though it has shown some improvement from the previous year's -$15.66 billion. The operating cash flow to net income ratio is -0.49, highlighting cash flow generation challenges relative to net income losses. The free cash flow to net income ratio is negative, further reflecting cash outflows. Cash flow performance indicates significant room for improvement, especially in light of negative free cash flow and operating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.07B	53.10B	54.23B	63.05B	79.02B	77.87B
Gross Profit	15.79B	17.34B	21.71B	26.87B	43.81B	43.61B
EBITDA	1.11B	1.20B	11.24B	21.30B	33.87B	36.12B
Net Income	-20.50B	-18.76B	1.69B	8.01B	19.87B	20.90B
Balance Sheet
Total Assets	192.52B	196.49B	191.57B	182.10B	168.41B	153.09B
Cash, Cash Equivalents and Short-Term Investments	21.21B	22.06B	25.03B	28.34B	28.41B	23.89B
Total Debt	50.76B	50.01B	49.28B	42.05B	38.10B	36.40B
Total Liabilities	86.77B	91.45B	81.61B	78.82B	73.02B	72.05B
Stockholders Equity	97.88B	99.27B	105.59B	101.42B	95.39B	81.04B
Cash Flow
Free Cash Flow	-10.94B	-15.66B	-14.28B	-9.62B	9.13B	20.93B
Operating Cash Flow	10.08B	8.29B	11.47B	15.43B	29.46B	35.38B
Investing Cash Flow	-8.53B	-18.26B	-24.04B	-10.23B	-24.28B	-20.80B
Financing Cash Flow	-3.14B	11.14B	8.51B	1.11B	-6.21B	-12.92B

Intel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTC, the sentiment is Positive. The current price of 24.56 is above the 20-day moving average (MA) of 21.34, above the 50-day MA of 21.74, and above the 200-day MA of 21.67, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 69.12 is Neutral, neither overbought nor oversold. The STOCH value of 90.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTC.

Intel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVDA	82 Outperform	$4.40T	58.13	115.46%	0.02%	86.17%	81.36%
AMD	78 Outperform	$288.07B	102.18	4.70%	―	27.17%	108.67%
TSM	77 Outperform	$1.02T	27.19	33.29%	1.13%	38.65%	―
ADI	75 Outperform	$114.95B	63.06	5.21%	1.65%	-6.17%	-14.16%
AMAT	75 Outperform	$129.81B	19.28	35.64%	1.03%	6.70%	-5.95%
Sector *	57 Neutral	€1.69B	12.10	1.59%	3.67%	2.96%	-106.86%
INTC	52 Neutral	$107.50B	―	-19.24%	0.51%	-3.72%	-2120.70%

Intel Corporate Events

Intel Amends Altera Sale Agreement with SLP VII

On April 14, 2025, Intel Corporation entered into a transaction agreement to sell a majority interest in its Altera business to SLP VII Gryphon Aggregator, L.P. An amendment to this agreement was made on August 11, 2025, adjusting the purchase price calculations and extending the closing date to September 13, 2025. The transaction is expected to impact Intel’s operations, with potential risks including regulatory approval delays, changes in business relationships, and competition in the semiconductor industry.

Intel Announces Major Restructuring Initiative in July 2025

In the second quarter of 2025, Intel announced a significant restructuring initiative aimed at simplifying operations, enhancing transparency, and reallocating resources to core business areas. This plan, approved by the Audit Committee on July 10, 2025, includes a 15% reduction in the workforce and is expected to incur $1.9 billion in restructuring charges, primarily recognized in the second quarter. The initiative aims to improve efficiency and financial discipline, with a focus on strengthening Intel’s core product portfolio and AI roadmap. Despite these efforts, Intel reported a flat revenue of $12.9 billion for Q2 2025 and a GAAP EPS loss of $(0.67), impacted by restructuring charges. The company is targeting $17 billion in non-GAAP operating expenses for 2025 and $18 billion in gross capital expenditures.