a Complete Analysis of the Intel Stock Price Performance

A Complete Analysis of the Intel Stock – Price, Performance, and 2025 Predictions

Founded in Mountain View, California, in July 1968 by Robert Noyce and Gordon Moore, Intel Corp. (INTC) has been one of the leading microprocessors, chipsets, and semiconductor manufacturers since its inception. Never has a corporation delivered such results from the start with so little at their discourse.

As per Statista, Intel secured the spot as the largest semiconductor in the world from 2009 through 2020. It was only in 2021 that rival Samsung Electronics (SSNLF) took the top spot. In 2022, Intel had a revenue of $58.4 billion that came in second place to Samsung’s revenue of $65.6 billion, with SK Hynix, Qualcomm (QCOM), and Micron Technology (MU) rounding out the top five revenue generators in the industry. 

This blog will discuss Intel’s stock forecast, its growth possibility, and the challenges it will have to contend with in the upcoming years.

Overview of Intel’s Business Model

The activities of Intel Corp. include designing, producing, and marketing computer hardware and software. It provides platforms for communications, networking, computers, and data storage. Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Programmable Solutions Group (PSG), and other areas are how the company is run.

  • The CCG industry comprises platforms made for laptops, 2-in-1 computers, desktops, tablets, phones, wired and wireless networking devices, and mobile communication components.
  • Workload-optimized platforms and associated products for the enterprise, cloud, and communication infrastructure markets are included in the DCG sector.
  • Targeted verticals and embedded applications for the retail, manufacturing, healthcare, energy, automotive, and government industry segments are provided by the IOTG section.
  • NAND flash memory products, which are mostly employed in solid-state drives, make up the NSG category.
  • Programmable semiconductors and related devices are found in the PSG segment and are intended for use in a variety of markets, such as communications, data centers, industrial, military, and automotive.
  • Results from other non-reportable segments and corporate-related expenses make up the remaining Intel segments.

Current Intel Share price & trading range

Intel shares witnessed a drop of around 10% in the month of December after the corporation issued a report stating the first quarter of 2024 that lagged Intel stock forecasts even though the results for the latest quarter beat the estimates of Wall Street. 

Stated below is the performance of  Intel versus LSEG (formerly Refinitiv) consensus expectations for the quarter that ended in December:

  • Earnings per share: 54 cents adjusted vs. 45 cents expected
  • Revenue: $15.4 billion vs. $15.15 billion expected

Compared to LSEG’s projections of 33 cents per share on $14.15 billion in revenue, Intel projects adjusted profits per share for the first quarter of fiscal 2024 to be 13 cents on between $12.2 billion and $13.2 billion in sales. According to GAAP, the company anticipates a fiscal first-quarter net loss of 25 cents per share. As per the Intel Stock prediction for 2025, Intel (INTC -5.37%) is all set to enter the foundry market at earnest. The 52-week trading range stands at $25.45-$51.28.

What are the analysts saying?

Considering the Intel stock price history, Intel (INTC -5.37%) has not been a perennial performer on the stock market for a really long time. The stock’s price has remained flat over the past five years, and it cannot compete with the tech-laden Nasdaq-100 Technology Sector index’s commendable gains of over 148% during the same time frame. 

However, 2023 was a good year for Intel Investors. The stock outperformed the Nasdaq-100’s 50% gains last year, rising an astounding 60%. With the substantial increase, Intel’s market value now stands at $199 billion. The Intel stock forecast indicates its place among the best tech stocks of 2024 and even shows its entry into the trillion-dollar market club by 2030!

Intel could get back in the game by 2025!

Intel has been unable to deliver exciting numbers on the stock market over the past few years due to its poor financial performance. This can be attributed to the company’s market share losses to Advanced Micro Devices and its inability to jump on hot tech trends such as gaming graphics cards and consoles. This resulted in the decline of Intel’s earnings at a rate of 31% over the last five years. However, as per Intel’s stock forecast, analysts predict its earnings will increase annually by 10% for the next five years. The good part is that Intel’s revival is expected to begin in 2024.

Intel Metrics 2023 2024 2025
Estimated Revenue $54 Billion $61 Billion $67 Billion
Revenue Change (YOY) -14% 13% 10%
Estimated EPS $0.95 $1.90 $2.70
EPS Change (YOY) -48% 100% 42%

 As per the table above, Intel’s earnings are expected to accelerate significantly in 2024 and 2025. Two prominent reasons for its growth are:

  • The comeback of the Personal Computer (PC) market
  • Growing demand for Artificial Intelligence (AI) Chips.

Top 3 reasons to buy yourself an Intel Stock ( as per the experts)

  • Intel’s foundry business is picking up pace:

Since Asia accounts for 80% of global semiconductor manufacturing, many chip designers desire more options in order to diversify their supply chains further. Intel heeded the plea and proceeded to build additional factories in Arizona and Ohio, investing $40 billion. Besides producing chips for other companies, Intel’s foundry service will also stimulate investments in novel technologies that may enhance its chip designs.

Revenue from Intel’s foundry services increased 34% to $311 million in the third quarter compared to the second quarter.

  • Chip sales are improving:

Even while the semiconductor industry’s future is bleak, Intel appears to have reached its lowest point. Every quarter of 2023 saw sales growth year over year, and management anticipates higher revenue in the fourth quarter. Since Intel’s stock has tracked the company’s revenue growth over the past 12 months, the upgraded guidance may indicate further gains. On the Q3 earnings call, management reported that it is getting closer to realizing its objective of reclaiming industry leadership.

  • New Server chips can lead to a revenue boost:

Over the past three years, Intel has increased its spending on research and development, which could result in further growth. The company’s Gaudi, Emerald Rapids, and Sierra Forest processors are anticipated to increase their market share in the data center industry in the upcoming year. Due to Intel’s improved competitiveness across its entire Xeon server chip range, Wall Street has raised its revenue projections. According to current estimates, sales will rise by 13% in the upcoming year, which might boost the stock price.

Should you invest in an Intel stock in upcoming years?

As per the valuation and analytics, increased sales of chips and the growing foundry business will make Intel a must-buy stock in the coming years. For its foundry business, Intel has so far received orders worth $15 billion that cover not only Intel 18A but also other nodes and advanced packaging services. Although the news has not been verified, Nvidia will allegedly use Intel for some of its advanced packaging needs. A significant victory for Intel’s young foundry business has been confirmed: a deal with Microsoft to use Intel 18A for an unnamed future product. Beyond the 18A, Intel 14A is set to arrive in 2026, and Intel 10A will follow in 2027.

Final Thoughts:

Even though Intel stocks have not been an impressive investment in the past few years, they show much promise in the future. Artificial intelligence, the revival of personal computers, and significant growth in the foundry industry show potential chances of competitive advantage in the coming years. 

While risks and challenges prevail, as per Intel stock forecast, investors can expect to see processing returns on their investments with Intel.