Intel (INTC) AI Stock Analysis

• Market Cap: $96.31B
• Dividend Yield: 2.41%
• Average Volume (3M): 72.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -3.97%
• EPS Growth: -562.40%
• Country: US
• Employees: 108,900
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 0.13
• Shares Outstanding: 4,362,000,000
• 10 Day Avg. Volume: 95,402,486
• 30 Day Avg. Volume: 72,371,114
• PEG Ratio: 2.88
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.67
• Enterprise Value/Market Cap: 3.01
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 17.27
• Enterprise Value/Ebitda: 19.95
• 1Y Price Target: $21.30
• Price Target Upside: 5.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 31

• Rating: 49 Neutral
• Price Target: $23.00 ▲(14.20%Upside)

Intel's overall score reflects significant financial challenges and operational difficulties. Positive earnings call highlights and strong technical momentum provide a counterbalance, but valuation concerns remain. Strategic leadership changes offer a potential catalyst for improvement.

Positive Factors

Investor Relations

The presence of high-level executives like the Executive Vice President in the investor meeting suggests a strong commitment to investor relations.

Strategic Execution

Intel's process changes, such as copy-exact and capex discipline, are viewed positively for improving strategic execution.

Technology Differentiation

The Intel 14A process, leveraging PowerDirect and advanced packaging capabilities, is highlighted as a key technology differentiator.

Negative Factors

Competitive Environment

The decision to shift the AI accelerator Falcon Shores to an internal-only product reflects the difficult competitive environment Intel faces in AI acceleration.

Guidance and Margins

Optimism on near-term numbers was quickly dashed with guidance below consensus, attributed to an uncertain macro-environment and tariff-related demand uncertainty.

Leadership and Strategy

Without a permanent CEO in place, there is a lack of clarity on the long-term strategic direction of Intel.

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 financial challenges, including declining revenues and profitability, as evidenced by negative net income and margins. The balance sheet is relatively solid with manageable leverage, but cash flow difficulties due to high capital expenditures are notable.

Income Statement

Intel's income statement reveals a challenging period with negative net income and declining revenue. For the TTM, the gross profit margin stands at 31.68%, which is a decrease from prior years, indicating cost pressure. The net profit margin is negative due to substantial net losses. Additionally, revenue growth is negative, revealing a downswing in sales. EBIT and EBITDA margins are also negative, reflecting operational difficulties and a challenging market environment.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio is approximately 0.50, suggesting a moderate level of leverage. The equity ratio is 51.90%, which indicates a stable capital structure. However, the return on equity is negative due to the net losses, a concern for investors looking for profitability. The company's strong asset base and manageable debt levels provide some stability despite profitability challenges.

Cash Flow

The cash flow statement highlights a negative free cash flow growth rate, mostly driven by significant capital expenditures. The operating cash flow to net income ratio is not favorable due to negative net income, while the free cash flow to net income ratio is also negative. These figures point to a need for improved operational efficiency and better cost management to enhance cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.04B	53.10B	54.23B	63.05B	79.02B	77.87B
	Gross Profit
16.80B	17.34B	21.71B	26.87B	43.81B	43.61B
	EBIT
-9.97B	-11.68B	93.00M	2.33B	19.46B	23.68B
	EBITDA
1.50B	1.20B	11.24B	15.61B	33.87B	36.12B
	Net Income Common Stockholders
-19.20B	-18.76B	1.69B	8.01B	19.87B	20.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.03B	22.06B	25.03B	28.34B	28.41B	23.89B
	Total Assets
191.57B	196.49B	191.57B	182.10B	168.41B	153.09B
	Total Debt
49.28B	50.01B	49.28B	42.05B	38.10B	36.40B
	Net Debt
42.20B	41.76B	42.20B	30.91B	33.27B	30.54B
	Total Liabilities
81.61B	91.45B	81.61B	78.82B	73.02B	72.05B
	Stockholders Equity
105.59B	99.27B	105.59B	101.42B	95.39B	81.04B
Cash Flow		Free Cash Flow
-12.83B	-15.66B	-14.28B	-9.62B	9.13B	20.93B
	Operating Cash Flow
10.32B	8.29B	11.47B	15.43B	29.46B	35.38B
	Investing Cash Flow
-15.61B	-18.26B	-24.04B	-10.23B	-25.17B	-20.80B
	Financing Cash Flow
7.31B	11.14B	8.51B	1.11B	-6.21B	-12.92B

Intel Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 20.14 is below the 20-day moving average (MA) of 20.61, below the 50-day MA of 20.50, and below the 200-day MA of 21.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 59.27 is Neutral, 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
NVDA	85 Outperform	$3.51T	46.37	115.46%	0.03%	86.17%	81.36%
AMD	81 Outperform	$196.42B	86.86	3.90%	―	21.71%	99.00%
AMAT	81 Outperform	$138.66B	21.03	36.37%	1.06%	6.12%	-5.66%
ADI	77 Outperform	$115.40B	63.31	5.21%	1.70%	-6.17%	-14.16%
TSM	77 Outperform	$908.81B	27.33	32.11%	1.27%	35.45%	47.97%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
INTC	49 Neutral	$96.31B	―	-18.66%	2.41%	-3.97%	-562.40%

Intel Corporate Events

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.

Intel Appoints Lip-Bu Tan as New CEO

On March 10, 2025, Intel Corporation’s Board of Directors appointed Lip-Bu Tan as the new Chief Executive Officer, effective March 18, 2025. Tan, who has extensive experience in the semiconductor industry, previously served as CEO of Cadence Design Systems and has been involved with Intel in various capacities. His appointment is seen as a strategic move to accelerate Intel’s turnaround and leverage growth opportunities. Tan’s compensation package includes a base salary, performance bonuses, and significant equity awards tied to Intel’s stock performance. The appointment marks a leadership transition from interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who will continue in other executive roles.