Intel's New CEO Is Talking the Talk and Winning Over Analysts. Should You Buy INTC Stock Now?
Intel (INTC) is among the largest semiconductors companies globally, but it has underperformed the broader markets by a wide margin over the past two decades. Valued at a market cap of $85.4 billion, Intel stock is down nearly 40% over the past 10 years. It also trades over 72% below all-time highs as it has lost market share to peers Nvidia (NVDA) and Advanced Micro Devices (AMD).
Given its beaten-down valuation, let's see if you should invest in INTC stock right now.
Intel's New CEO Outlines Long-Term Vision
During Intel's Vision 2025 conference last week, newly appointed CEO Lip-Bu Tan laid out his vision for rebuilding the chipmaker's engineering-led culture. Tan's presentation acknowledged Intel's significant shortcomings: loss of engineering talent, lack of innovation, and deterioration of customer trust.
The CEO repeatedly stressed cultural transformation, proposing a 'day-1 startup culture' focused on innovation. He plans to solicit customer feedback, recruit top engineering talent, and potentially spin off non-core businesses.
The event showcased Intel's three-pronged strategy to gain traction in the artificial intelligence segment and strengthen data center capabilities.
On the foundry front, executives announced that Intel's advanced 18A manufacturing process has entered the 'risk production' phase. This refers to the process of scaling up production from hundreds to thousands of units.
Intel also emphasized its partnerships with customers like Zoox, EdgeRunner AI, and Softec, demonstrating how Intel technology enables autonomous vehicles, military applications, and healthcare solutions.
Stifel Maintains a 'Hold' Rating on Intel Stock
Analysts at Stifel maintained a 'Hold' rating on Intel with a $21 price target. Notably, analysts from Stifel and Truist Securities expressed encouragement following Tan's address.
According to a report from Seeking Alpha, Truist called it 'the most constructive message we've heard from Intel in... as long as we've covered the company,' noting the refreshing focus on culture rather than products or manufacturing nodes. More details on Intel's crucial Foundry strategy are expected at the Intel Foundry Direct Connect event in late April.
Out of the 36 analysts covering INTC stock, one recommends 'Strong Buy,' 31 recommend 'Hold,' and four recommend 'Strong Sell.' The average target price for Intel stock is $24.62, indicating an upside potential of over 20% from current levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
2 hours ago
- Globe and Mail
'(Build) The Biggest, Baddest CPU': Intel Stock (NASDAQ:INTC) Notches up Despite Ironic Twist
This might have been the unkindest cut that chip stock Intel (INTC) could have received. Sure, yesterday and its potential loss of CHIPS Act funding was a low blow, no mistake there, but it only got worse as new reports revealed that several Intel staffers were leaving Intel to do exactly what Intel would have needed them to do: build the 'biggest, baddest CPU' around. Shareholders took the news well, though, and sent shares up fractionally in Friday afternoon's trading. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Four of Intel's biggest names in research—who together had a combined experience of almost a century at Intel—departed the company in a plan to build a totally new kind of microprocessor. They will be using a kind of architecture that is completely different from Intel's, reports note, and in the process, hopefully show up their former bosses in the process. The four started their own company, called AheadComputing, and is working on an open style of architecture known as Reduced Instruction Set Computer – V, or RISC-V. The result, AheadComputing hopes, will be a processor that does fewer things than the current processor concept, but does this comparative handful of things better than the current processor does them. Essentially, reports note, the four are risking that AheadComputing—a vastly smaller company—will be able to move faster and better than Intel. Given Intel's new 'risk-averse' nature that we discovered yesterday with the 50% gross profit concept, they may not be wrong. But what has Intel missed out on in the process? Roadmapping an Uncertain Future But life goes on at Intel, reports note, and word notes that the Intel Foundry Direct Connect 2025 event is showing off its roadmaps and its partnerships. Intel Foundry, of course, is the chip manufacturing portion of Intel, and the one which has perhaps come under the most fire of late. But Intel looks to start delivering under the 18A process this year, and that should go a long way toward re-establishing Intel's dominance as a chip maker. Naturally, it is unclear as yet how much capacity 18A will have overall, and how much of that capacity can go to making other companies' chips. Early word suggests that everything is on schedule, so that will, at least, not be a problem. And with 14A and 14A-E waiting in the wings, it is entirely possible that Intel may be able to keep the streak going and come out ahead in the end. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on two Buys, 25 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 34.97% loss in its share price over the past year, the average INTC price target of $21.29 per share implies 5.63% upside potential. See more INTC analyst ratings Disclosure Disclaimer & Disclosure Report an Issue
Globe and Mail
10 hours ago
- Globe and Mail
The Nasdaq Bounces Back: 2 Artificial Intelligence (AI) Stocks Worth Buying Right Now
Technology stocks are surging once again, especially artificial intelligence stocks. But don't think it's too late to buy in. The two AI stocks below have a very bright future. Despite their upfront premiums, rapid and sustained growth rates could deliver huge gains for patient shareholders. This is still the No. 1 artificial intelligence stock Every AI investor should own Nvidia (NASDAQ: NVDA). Nvidia's business model and savvy strategy have placed it at the center of the AI revolution, a position it will likely retain for many years to come. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » At the core of Nvidia's business model is its hardware for graphics processing units (GPUs). These GPUs power data centers around the world, which in turn power the training and execution of nearly every AI model. With a 90% market share for data center GPUs, it's safe to say that Nvidia dominates the market for GPUs related to AI applications. The market simply can't get enough of Nvidia's components. Just take a look at Nvidia's gross profits and customer demand. Nvidia currently enjoys industry-leading gross margins of around 70%. GPU makers like Intel (NASDAQ: INTC), meanwhile, have gross profit margins of around 30%. Nvidia's new Blackwell architecture quickly sold out for 12 months following its release. NVDA Revenue Growth Estimate for Current Fiscal Year data by YCharts Nvidia stock isn't cheap with a price-to-sales ratio of 23. However, the AI market is expected to grow by more than 30% per year through 2033. Due to its high profitability, shares trade at just 45 times trailing earnings and just 33 times forward earnings. That's still a premium price. But the upfront premium should be more than justified over a long holding period. There's huge growth potential for this GPU stock Compared to Nvidia, Intel has many flaws. The company made several ill-advised acquisitions over the past decade, and it failed to properly invest in both the hardware and software needs of the AI industry. The result is a stagnating business with relatively low levels of profitability. The trade-off for investors, however, is a rock-bottom valuation. If Intel can figure out how to turn things around in the long term, patient investors could make boatloads of money. Let's break down the current situation in a little more detail. While Nvidia has a roughly 90% market share for data center GPUs, most estimates peg Intel with somewhere around a 1% market share. Ouch. But here's the thing: Intel shares trade at just 1.6 times sales compared to Nvidia's premium valuation of 23 times sales. Intel's discounted valuation is warranted. It's less profitable, is posting significantly lower sales growth figures, and doesn't have a visible pathway to competing head-to-head with Nvidia over the next few years. But if you're willing to look far beyond the next few years, it's reasonable to expect Intel to make up some of the gap between itself and Nvidia. Right now, Nvidia certainly has an edge on GPU performance. But its biggest competitive advantage is arguably its CUDA software platform, which locks developers into its hardware-software ecosystem. Eventually, however, the AI market will grow large enough to accommodate several niches. Intel could compete in segments of the AI industry that Nvidia ignores due to its small size. Intel could also compete aggressively on price, especially since Nvidia's chips are priced at a premium and frequently face supply shortages. All in all, Intel faces a difficult road ahead. But with a rock-bottom valuation and minimal expectations, very patient investors can secure an attractive price for a speculative bet with plenty of risk, but also arguably more upside potential than Nvidia. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor 's total average return is997% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
Globe and Mail
4 days ago
- Globe and Mail
Intel's Turnaround May Be the Best Bet No One's Watching
Recent semiconductor sector news from late May indicates that Intel Corporation (NASDAQ: INTC) has discovered an alleged embezzlement, which media outlets have dubbed the "chip bandit." Over $840,000 was reportedly involved in the embezzlement at its Israeli operations. [content-module:CompanyOverview|NASDAQ:INTC] This sum is financially insignificant for a company with a market value of nearly $90 billion. Yet, this event holds significant symbolic meaning when viewed under the right light. It highlights a proactive approach to efficiency and accountability under the new CEO, Lip-Bu Tan. Investors should consider that assuming a new role, including one as significant as Intel's CEO, naturally requires some time for adaptation. Having gained his leadership position in March 2025, Intel is now starting to show increasing signs of momentum just two months into his tenure. The company's strengthened internal focus points to an even larger financial narrative for Intel that most investors are not paying attention to: the company's stock currently trades at a notable discount to its asset value. For investors, this raises a key question. Does this internal tightening, combined with the broader strategic moves, suggest Intel is an undervalued opportunity ready to be taken for the long ride? Why Intel's Valuation Signals Opportunity Intel's current stock valuation presents an interesting puzzle for investors to ponder. The company's shares are trading at a price-to-book ratio (P/B) of approximately 0.84. This metric compares a company's market value to its book value. Book value is what a company would be worth if it sold all its assets and paid off all its debts. Consider these figures: Intel's market capitalization as of late May was approximately $88.18 billion. The company's book value as of the first quarter of 2025 was approximately $106 billion. A P/B ratio below 1.0 means the market values the company at less than its accounting assets. For a major technology firm like Intel, this can suggest the stock is oversold or considerable future challenges are currently being priced into the stock. How Strategy Paves the Way for Intel's Growth CEO Lip-Bu Tan leads Intel's turnaround with a clear plan focused on efficiency and core strengths. The overall drive for efficiency, symbolized by catching the embezzlement, is supported by aggressive cost-cutting measures currently being undertaken by the company, including: Financial Optimization: Intel plans to reduce its workforce significantly, potentially by over 20%. This is part of a restructuring initiative aimed at enhancing agility. The company also aims for lower operating expenses in 2026, with gross capital expenditures targeted at $18 billion, down from $25 billion in the previous year. Portfolio Optimization: Intel is exploring the sale of its Networking and Edge (NEX) unit. This division generated $5.8 billion in revenue and $931 million in operating income in 2024. Selling NEX would sharpen Intel's focus on its core PC and Data Center chip businesses. It would also free up capital and management resources. This follows the divestment of a 51% stake in the Altera FPGA business, showing a pattern of strategic asset monetization. The Foundry Vision: Intel's Foundry Services (IFS) is vital for future growth. Chief Financial Officer Dave Zinsner stated on May 13 that IFS is "highly confident" of reaching break-even status by 2027. Commitment to the Ohio plant, a major domestic manufacturing project, remains firm. CEO Tan actively engages customers to build trust and secure product wins for IFS, a crucial part of this long-term growth engine. Why Intel's Stock Could Surprise Investors [content-module:Forecast|NASDAQ:INTC] Despite these strategic initiatives, Intel's stock remains subject to market skepticism. In late May, shares were trading around $20.22, representing a 33% decline over the past year. Analyst sentiment remains cautious, with a Reduce consensus rating and an average price target of $21.57 suggesting only a modest upside. Investors remain concerned by Intel's Q2 guidance, which projected breakeven non-GAAP earnings per share (EPS). Ongoing operating losses from IFS, which amounted to $2.3 billion in Q1, also fuel this caution. However, if Intel can show incremental progress in narrowing these losses and meeting its guidance, sentiment may gradually begin to shift in a more favorable direction. The Contrarian View However, this pessimism may overlook foundational strategic shifts. Intel holds significant inherent strengths: Extensive ownership of foundries on U.S. soil, which is strategically important. Substantial scale, evidenced by its Q1 revenue of $12.7 billion, is significantly larger than competitor AMD's (NASDAQ: AMD) $7.4 billion in Q1 revenue. Ongoing product innovation, including Arc Pro Battlemage GPUs and Gaudi 3 AI accelerators. Upcoming Panther Lake and Nova Lake CPUs are also in the pipeline. Recent partnerships, such as the selection of Intel's Xeon 6 CPU for Nvidia's DGX B300 AI System. This contrarian perspective argues that the stock's current discount to its asset value may provide a significant margin of safety, with considerable downside already priced in. Why the Long Game May Pay Off Intel's current valuation presents a unique investment proposition for those with a long-term view. This discount and a clear strategic pivot under new leadership highlight a potential opportunity. CEO Tan's focus on operational streamlining, strategic divestments, and committed investment in the foundry business aims to unlock intrinsic value. While Intel's turnaround is a multi-year effort, and success is not guaranteed, the stock's current price-to-book discount and the strategic groundwork being laid could significantly improve the odds of long-term profit. This makes Intel a potential candidate for patient, risk-tolerant investors comfortable with a contrarian stance. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
