Intel (INTC) AI Stock Analysis

• Market Cap: $90.60B
• Dividend Yield: 2.42%
• Average Volume (3M): 83.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -3.72%
• EPS Growth: -2120.70%
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): -0.10
• Shares Outstanding: 4,377,000,000
• 10 Day Avg. Volume: 84,434,595
• 30 Day Avg. Volume: 83,281,370
• PEG Ratio: 0.68
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.28
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 1.43
• 1Y Price Target: $22.25
• Price Target Upside: 7.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 29

• Rating: 52 Neutral
• Price Target: $21.00 ▲(1.45%Upside)

Intel's overall stock score reflects significant profitability and valuation challenges, with negative earnings and cash flow issues. While the earnings call provided some positive guidance, macroeconomic uncertainties and competitive pressures remain significant risks.

Positive Factors

Financial Performance

Intel posted a fairly positive June quarter, with about a $930 million upside in revenue and a $0.09 beat on EPS, excluding one-time charges.

Operating Margin

Intel made a significant improvement in its segment operating margin, growing to 16.1% from 13.9% quarter-over-quarter, and from just 6.4% last year.

Strategic Restructuring

Intel's plan to spin off its Network & Edge Group as a standalone company aims to streamline operations and improve the balance sheet.

Negative Factors

Foundry Business Challenges

Continued losses in Intel's merchant foundry business, losing roughly a billion per quarter, contribute to a Neutral rating.

Gross Margin Pressure

There is risk in the second half due to customer pull-ins and gross margins are expected to continue declining.

Market Competition

Intel continues to lose market share to AMD in the server and Data Center market, affecting its competitive edge.

Intel Business Overview & Revenue Model

Company Description

Intel 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 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 profitability challenges with negative net income and declining revenue. Despite a solid capital structure with manageable leverage, 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	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
EBITDA	1.20B	11.24B	21.30B	33.87B	36.12B
Net Income	-18.76B	1.69B	8.01B	19.87B	20.90B
Balance Sheet
Total Assets	196.49B	191.57B	182.10B	168.41B	153.09B
Cash, Cash Equivalents and Short-Term Investments	22.06B	25.03B	28.34B	28.41B	23.89B
Total Debt	50.01B	49.28B	42.05B	38.10B	36.40B
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	-24.28B	-20.80B
Financing Cash Flow	11.14B	8.51B	1.11B	-6.21B	-12.92B

Intel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 20.7 is below the 20-day moving average (MA) of 22.84, below the 50-day MA of 21.66, and below the 200-day MA of 21.81, indicating a bearish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 37.39 is Neutral, neither overbought nor oversold. The STOCH value of 37.44 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	82 Outperform	$4.23T	55.89	115.46%	0.02%	86.17%	81.36%
AMD	80 Outperform	$269.92B	122.03	3.90%	―	21.71%	99.00%
AMAT	80 Outperform	$149.02B	22.60	36.37%	0.89%	6.12%	-5.66%
TSM	77 Outperform	$1.01T	27.96	33.29%	<0.01%	38.65%	―
ADI	71 Outperform	$113.06B	62.02	5.21%	1.68%	-6.17%	-14.16%
INTC	52 Neutral	$90.60B	―	-19.24%	2.42%	-3.72%	-2120.70%
Sector *	51 Neutral	AU$1.67B	2.26	-31.66%	3.53%	16.55%	-7.79%

Intel Corporate Events

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.

The most recent analyst rating on (INTC) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Intel stock, see the INTC Stock Forecast page.

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.