Intel (INTC) AI Stock Analysis

• Market Cap: $227.07B
• Dividend Yield: N/A
• Average Volume (3M): 119.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -1.49%
• EPS Growth: N/A
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.15
• Shares Outstanding: 4,995,000,000
• 10 Day Avg. Volume: 75,499,381
• 30 Day Avg. Volume: 119,318,821
• PEG Ratio: 6.67
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 3.33
• P/FCF Ratio: -35.52
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 4.73
• Enterprise Value/Gross Profit: 13.62
• Enterprise Value/Ebitda: 17.43
• 1Y Price Target: $48.21
• Price Target Upside: 9.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 33
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): $53.88B

• Rating: 57 Neutral
• Price Target: $50.00 ▲(13.35% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is held back primarily by weak financial performance (compressed margins, losses, and persistently negative free cash flow). Offsetting factors are strong technical momentum and a mixed-but-improving narrative from the earnings call (recent beats and a 2026 positive adjusted FCF target), supported by the $5B financing event.

Positive Factors

Advanced process roadmap (Intel 18A shipping)

Shipping Intel 18A represents a structural step toward restoring leadership in advanced nodes. Having production-grade 18A products and rising EUV mix supports long-term competitiveness in high-margin foundry work and AI-optimized chips, enabling sustained customer wins if yields continue improving.

Custom ASIC and AI-centric product momentum

Rapid ASIC and custom silicon growth diversifies revenue beyond commodity CPUs into high-value, sticky designs for cloud and AI customers. A >$1B run rate and strong sequential growth point to durable, higher-margin product niches that strengthen customer relationships and revenue visibility.

Improved liquidity and balance sheet resilience

Large cash balance plus the $5B strategic investment materially enhance financial flexibility to fund capex, cover operational losses, and support the foundry ramp. Reduced near-term maturities and debt repayment lower refinancing risk and enable multiyear execution investments.

Negative Factors

Persistent negative free cash flow

Sustained negative free cash flow means the business is not self-funding its heavy capex and ramp costs, increasing dependence on external capital. Over months to years this constrains strategic flexibility, raises refinancing needs, and can limit organic funding for R&D or dividends.

Material margin and profitability erosion

A multi-year collapse in margins and operating profitability reduces internal capital generation and weakens return on invested capital. Margin damage limits ability to fund R&D or price competitively, and a slow path back to historical margins prolongs recovery and shareholder returns.

Execution risk from yields, supply and foundry losses

Large foundry losses and suboptimal yields during node ramps are durable execution risks: they reduce margins, delay customer fulfillment, and can erode credibility with hyperscalers. Persistent yield or supply shortfalls would impair the ability to capture accelerating AI-driven demand.

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 generates revenue primarily through the sale of its semiconductor products, which include microprocessors, chipsets, and memory modules. The company operates through several key segments: Client Computing Group (CCG), which focuses on personal computers and laptops; Data Center Group (DCG), which supplies processors and solutions for data centers; and Internet of Things Group (IoTG), which provides products for connected devices. Significant revenue streams include direct sales to original equipment manufacturers (OEMs) and system builders, as well as retail sales. Intel also engages in strategic partnerships with other technology firms and cloud service providers, enhancing its market presence and expanding its customer base. Additional revenue comes from licensing its technology and patents to other companies, further diversifying its income sources.

Intel Financial Statement Overview

Summary

Overall fundamentals remain weak: multi-year margin compression and losses (income statement weakness) plus meaningfully negative free cash flow despite positive operating cash flow. The main offset is a relatively resilient balance sheet with manageable leverage and sizable liquidity, but earnings power and cash conversion have not yet recovered.

Income Statement

Profitability has materially deteriorated versus 2020–2021 peak levels. Revenue has been in a multi-year downcycle (annual declines since 2022 and roughly flat-to-down in TTM (Trailing-Twelve-Months)), while gross margin has compressed significantly (from ~56% in 2020–2021 to ~36% in TTM). The company remains challenged at the operating line (negative EBIT in 2024 and still below healthy levels in TTM), and net results are weak (large loss in 2024 and only near breakeven loss in TTM), indicating an early stabilization but not a full earnings recovery yet.

Balance Sheet

The balance sheet is relatively resilient for the cycle. Leverage appears manageable with debt-to-equity around ~0.44 in TTM (Trailing-Twelve-Months), improved from 2024 (~0.50), and equity has grown versus 2024, supporting asset expansion. The key weakness is shareholder returns: return on equity was deeply negative in 2024 and only marginally positive in TTM, reflecting that earnings power has not yet caught up to the capital base.

Cash Flow

Cash generation is under pressure. Operating cash flow remains positive in TTM (Trailing-Twelve-Months) but is far below 2020–2021 levels, and free cash flow is meaningfully negative across 2022–TTM, with further deterioration in TTM versus 2024. While net losses narrowed in TTM, free cash flow did not rebound alongside it, highlighting that the business is still in a heavy investment/spend phase and not yet self-funding through free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	52.85B	53.10B	54.23B	63.05B	79.02B
Gross Profit	18.38B	17.34B	21.71B	26.87B	43.81B
EBITDA	14.35B	1.20B	11.24B	21.30B	33.87B
Net Income	-267.00M	-18.76B	1.69B	8.01B	19.87B
Balance Sheet
Total Assets	211.43B	196.49B	191.57B	182.10B	168.41B
Cash, Cash Equivalents and Short-Term Investments	37.42B	22.06B	25.03B	28.34B	29.25B
Total Debt	46.59B	50.01B	49.28B	42.05B	38.10B
Total Liabilities	85.07B	91.45B	81.61B	78.82B	73.02B
Stockholders Equity	114.28B	99.27B	105.59B	101.42B	95.39B
Cash Flow
Free Cash Flow	-4.95B	-15.66B	-14.28B	-9.62B	9.13B
Operating Cash Flow	9.70B	8.29B	11.47B	15.43B	29.46B
Investing Cash Flow	-14.82B	-18.26B	-24.04B	-10.23B	-24.28B
Financing Cash Flow	11.59B	11.14B	8.51B	1.11B	-6.21B

Intel Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTC, the sentiment is Neutral. The current price of 44.11 is below the 20-day moving average (MA) of 47.01, above the 50-day MA of 43.59, and above the 200-day MA of 31.73, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INTC.

Intel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSM	82 Outperform	$1.57T	34.08	36.46%	0.82%	39.73%	56.22%
ASML	78 Outperform	$559.08B	52.61	51.52%	0.63%	24.91%	39.95%
NVDA	76 Outperform	$4.57T	46.56	107.36%	0.02%	65.22%	58.53%
AVGO	73 Outperform	$1.58T	69.99	31.05%	0.69%	23.87%	285.84%
AMD	67 Neutral	$326.28B	76.89	7.08%	―	31.83%	80.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	57 Neutral	$227.07B	-544.81	-0.25%	―	-1.49%	―

Intel Corporate Events

Intel Files Updated Resale Prospectus Supplement with SEC

On January 23, 2026, Intel filed a new resale prospectus supplement with the U.S. Securities and Exchange Commission to supersede a prior prospectus supplement from September 5, 2025, in connection with a Warrant and Common Stock Agreement dated August 22, 2025, between Intel and the U.S. Department of Commerce as selling securityholder. The updated filing, made under Intel’s automatic shelf registration statement on Form S-3ASR, merely transfers the registration of previously registered securities without creating or issuing any new securities, does not involve any sale of securities by Intel or guarantee that the Commerce Department will sell its holdings, and confirms via an accompanying legal opinion the validity of the common stock and warrant already issued or issuable under the agreement, clarifying that Intel would receive no proceeds from any resale by the government.

The most recent analyst rating on (INTC) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Intel stock, see the INTC Stock Forecast page.

Intel Raises $5 Billion via Private Share Sale

On December 26, 2025, Intel completed a private placement of 214,776,632 new common shares to NVIDIA for $5.0 billion in cash at $23.28 per share, under a previously agreed September 15, 2025 securities purchase agreement that relied on an exemption from public offering requirements. The transaction provides Intel with substantial new capital while expanding NVIDIA’s equity stake, underscoring deepening financial ties between two major chipmakers and potentially influencing competitive dynamics and strategic collaboration in the semiconductor industry.

The most recent analyst rating on (INTC) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Intel stock, see the INTC Stock Forecast page.

Intel Appoints Dr. Craig Barratt to Board

On November 10, 2025, Intel Corporation announced the appointment of Dr. Craig H. Barratt to its board of directors as an independent director. Dr. Barratt, with over three decades of experience in the semiconductor and technology industries, is expected to bring valuable insights to Intel’s strategic growth. His previous roles include CEO of Atheros Communications and senior vice president at Intel, overseeing ethernet, photonics, and networking businesses. His appointment is seen as a strategic move to strengthen Intel’s engineering excellence and drive technological advancements.

The most recent analyst rating on (INTC) stock is a Sell with a $29.00 price target. To see the full list of analyst forecasts on Intel stock, see the INTC Stock Forecast page.