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Intel (INTC)
NASDAQ:INTC
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Intel (INTC) AI Stock Analysis

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INTC

Intel

(NASDAQ:INTC)

Rating:58Neutral
Price Target:
$26.00
▲(6.17% Upside)
Intel's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. While technical analysis shows positive momentum, valuation metrics suggest potential overvaluation. The earnings call and corporate events provide some positive outlook with strategic initiatives and investments, but significant challenges remain in improving margins and competitive positioning.
Positive Factors
Asset Sale
Intel stated that the Altera sale to Silver Lake is expected to close and will generate $3.5 billion.
Product Development
Intel stated its upcoming leading-edge CPU Panther Lake (18A technology) remains on track to be introduced.
Strategic Investment
Softbank’s $2 billion strategic stake in Intel suggests greater interest in engaging with Intel manufacturing as part of Softbank’s Stargate initiative.
Negative Factors
Market Position
Government intervention or new investors are not expected to help Intel close its manufacturing, AI, or CPU share gaps against competitors.
Shareholder Impact
A potential 10% equity stake by the US government could dilute existing shareholders without offering immediate benefits.
Stock Performance
Intel's stock is likely to remain range-bound due to uncertainties around its manufacturing progress and external customer engagement.

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

Intel Business Overview & Revenue Model

Company DescriptionIntel Corporation engages in the design, manufacture, and sale of computer products and technologies worldwide. The company operates through CCG, DCG, IOTG, Mobileye, NSG, PSG, and All Other segments. It offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and non-platform or adjacent products, including accelerators, boards and systems, connectivity products, graphics, and memory and storage products. The company also provides high-performance compute solutions for targeted verticals and embedded applications for retail, industrial, and healthcare markets; and solutions for assisted and autonomous driving comprising compute platforms, computer vision and machine learning-based sensing, mapping and localization, driving policy, and active sensors. In addition, it offers workload-optimized platforms and related products for cloud service providers, enterprise and government, and communications service providers. The company serves original equipment manufacturers, original design manufacturers, and cloud service providers. Intel Corporation has a strategic partnership with MILA to develop and apply advances in artificial intelligence methods for enhancing the search in the space of drugs. The company was incorporated in 1968 and is headquartered in Santa Clara, California.
How the Company Makes MoneyIntel 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business units, highlighting which segments drive Intel's growth and profitability, and indicating strategic focus areas.
Chart InsightsIntel's Data Center segment is experiencing a gradual recovery after a significant decline, while Foundry Services show strong growth, indicating a strategic shift towards manufacturing. Client Computing remains stable but faces competitive pressures. The 'Other' segment's recent surge suggests potential new ventures or restructuring. Mobileye's revenue drop-off indicates a divestiture or strategic pivot. Overall, Intel's revenue diversification efforts are evident, with Foundry Services emerging as a key growth driver, potentially offsetting challenges in traditional segments.
Data provided by:Main Street Data

Intel Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with notable achievements in revenue, cost reduction, and technology advancement, but significant challenges remain in margins, the foundry business, and competition in the server and AI markets.
Q2-2025 Updates
Positive Updates
Revenue Exceeds Expectations
Second quarter revenue was $12.9 billion, above the high end of guidance, driven by strength across client and data center.
Cost Reduction and Restructuring
Significant progress in headcount reduction, achieving a target of 75,000 employees, reducing management layers by approximately 50%.
Intel 18A Progress
Steady progress on Intel 18A yield and performance targets, with a commitment to ramp this technology to scale.
CapEx Reduction
Reduced CapEx guidance by $5 billion year-to-date, with plans to further reduce in 2026.
Mobileye Monetization
Successfully monetized a portion of ownership of Mobileye, raising approximately $900 million.
Negative Updates
Gross Margin Decline
Non-GAAP gross margin of 29.7% due to $800 million of noncash impairment and accelerated depreciation charges.
Challenges in Foundry Business
Decision not to continue manufacturing projects in Germany and Poland, and to consolidate operations in Costa Rica.
Server Market Competition
Continued competition in the server market with challenges in multi-threading capabilities and performance per watt.
AI Strategy Challenges
Acknowledgment of a lack of cohesive silicon systems software stack and strategy in AI.
Company Guidance
During Intel Corporation's Q2 2025 earnings call, the company provided guidance for Q3, forecasting revenue between $12.6 billion and $13.6 billion, which represents a range of a 2% decline to a 6% increase sequentially. The anticipated non-GAAP gross margin is approximately 36%, with a tax rate of 12% and breakeven EPS. Intel expects operating expenses for 2025 to be $17 billion, decreasing to $16 billion in 2026. The guidance reflects Intel's strategic focus on reducing inefficiencies and optimizing costs, as evidenced by the company's decision to lower its 2025 CapEx guidance by roughly $5 billion year-to-date. Additionally, Intel highlighted the anticipated impact of its restructuring plans, including a significant reduction in management layers and a return-to-office mandate. The company remains committed to improving its balance sheet, targeting positive adjusted free cash flow, and intends to begin delevering this year.

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
55
Neutral
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
60
Neutral
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
48
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue53.07B53.10B54.23B63.05B79.02B77.87B
Gross Profit15.79B17.34B21.71B26.87B43.81B43.61B
EBITDA1.11B1.20B11.24B21.30B33.87B36.12B
Net Income-20.50B-18.76B1.69B8.01B19.87B20.90B
Balance Sheet
Total Assets192.52B196.49B191.57B182.10B168.41B153.09B
Cash, Cash Equivalents and Short-Term Investments21.21B22.06B25.03B28.34B28.41B23.89B
Total Debt50.76B50.01B49.28B42.05B38.10B36.40B
Total Liabilities86.77B91.45B81.61B78.82B73.02B72.05B
Stockholders Equity97.88B99.27B105.59B101.42B95.39B81.04B
Cash Flow
Free Cash Flow-10.94B-15.66B-14.28B-9.62B9.13B20.93B
Operating Cash Flow10.08B8.29B11.47B15.43B29.46B35.38B
Investing Cash Flow-8.53B-18.26B-24.04B-10.23B-24.28B-20.80B
Financing Cash Flow-3.14B11.14B8.51B1.11B-6.21B-12.92B

Intel Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.49
Price Trends
50DMA
22.68
Positive
100DMA
21.66
Positive
200DMA
21.70
Positive
Market Momentum
MACD
0.71
Positive
RSI
57.73
Neutral
STOCH
39.77
Neutral
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 24.49 is above the 20-day moving average (MA) of 23.71, above the 50-day MA of 22.68, and above the 200-day MA of 21.70, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 39.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTC.

Intel Risk Analysis

Intel disclosed 34 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
$4.17T48.56109.42%0.02%71.55%64.54%
81
Outperform
$294.28B28.8556.14%0.87%27.09%40.94%
78
Outperform
$1.44T78.2427.08%0.69%28.01%235.66%
77
Outperform
$262.56B93.134.70%27.17%108.67%
77
Outperform
$982.89B26.3433.29%1.15%38.65%57.18%
61
Neutral
$35.52B8.84-11.06%1.87%8.55%-8.14%
58
Neutral
$107.72B-19.24%0.51%-3.72%-2120.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INTC
Intel
24.49
5.42
28.42%
AMD
Advanced Micro Devices
151.14
12.99
9.40%
ASML
ASML Holding
781.70
38.27
5.15%
AVGO
Broadcom
334.89
195.66
140.53%
NVDA
Nvidia
167.02
60.58
56.91%
TSM
TSMC
243.41
82.44
51.21%

Intel Corporate Events

Regulatory Filings and Compliance
Intel Registers Stock Resale with SEC
Neutral
Sep 5, 2025

On September 5, 2025, Intel Corporation filed a prospectus supplement with the SEC to register the potential resale of a warrant and shares of common stock by the U.S. Department of Commerce. This filing, required by a prior agreement, does not involve a sale by Intel, and the company will not receive proceeds from any resale by the Department of Commerce.

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Intel Amends Funding Agreement with U.S. Commerce
Neutral
Aug 29, 2025

On August 27, 2025, Intel Corporation and the U.S. Department of Commerce amended their Direct Funding Agreement, removing several obligations for Intel, including project milestone requirements and workforce policy mandates, while maintaining certain restrictions under the CHIPS Act. This amendment facilitated the closing of the Purchase Agreement, resulting in Intel receiving $5.695 billion in accelerated disbursements and issuing shares and warrants to the DOC, impacting Intel’s financial operations and strategic positioning in the semiconductor industry.

Private Placements and FinancingBusiness Operations and Strategy
Intel Secures $8.9 Billion Investment from U.S. Government
Neutral
Aug 25, 2025

On August 22, 2025, Intel Corporation entered into a significant agreement with the United States Department of Commerce, involving an $8.9 billion investment by the U.S. government in Intel’s common stock. This transaction, part of the CHIPS Act and Secure Enclave program, aims to bolster Intel’s role in expanding the domestic semiconductor industry. The agreement includes the issuance of shares and warrants to the U.S. government, with the government holding a 9.9% stake in Intel. This investment reflects confidence in Intel’s ability to advance national priorities and strengthen the U.S. semiconductor supply chain. However, the transaction also presents risks, such as potential dilution of existing shareholders and uncertainties regarding funding and regulatory changes. The U.S. government’s involvement may impact Intel’s operations and strategic decisions, particularly in international markets.

Private Placements and FinancingBusiness Operations and Strategy
Intel Announces $2 Billion Investment from SoftBank
Positive
Aug 21, 2025

On August 18, 2025, Intel Corporation announced a $2 billion investment agreement with SoftBank Group Corp., under which SoftBank will purchase 86,956,522 shares of Intel’s common stock at $23 per share. This strategic investment aims to bolster semiconductor innovation in the U.S. and supports SoftBank’s vision of accelerating the AI revolution by enhancing access to advanced technologies. The transaction is subject to customary closing conditions, including regulatory approvals.

M&A TransactionsBusiness Operations and Strategy
Intel Amends Altera Sale Agreement with SLP VII
Neutral
Aug 14, 2025

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.

Business Operations and StrategyFinancial Disclosures
Intel Announces Major Restructuring Initiative in July 2025
Negative
Jul 24, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 22, 2025