We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Intel Corporation (INTC - Free Report) stock plunged 70% post chip foundry venture, yet Lip-Bu Tan’s appointment as new CEO and recent 10% stock rise hint at a potential turnaround. Is it a good buy now? Let’s see.
Intel May Rebound in 2025 for Four Key Reasons
Both Intel and NVIDIA Corporation (NVDA - Free Report) produce graphics processing units (GPUs) that are essential for modern computing, including machine learning and artificial intelligence (AI). However, NVIDIA’s CUDA software and Blackwell chips are highly sought after by developers and customers. The superior products from NVIDIA have allowed the company to secure a substantial share in most major AI segments, including data centers (read more: Is NVIDIA's Rise in Value a Sign to Invest in NVDA Stock?).
Of course, it’s challenging for Intel to compete with NVIDIA, but the former has more room to grow with a market capitalization of under $100 billion compared to NVIDIA’s $3 trillion plus. Moreover, Intel’s affordable AI accelerators can rival NVIDIA’s. Intel is spending billions of dollars on enhancing its AI capabilities and may enter the market with energy-efficient chips.
In the last two years, Intel has spent over $50 billion on upgrading its chip-manufacturing facilities. Such staggering infrastructure costs have made investors nervous due to the unprofitable foundry business. Intel’s foundry business continues to face tough competition from the likes of Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , or TSMC, and Samsung.
However, TSMC and Samsung located in Southeast Asia, have manufacturing centers in China. The ongoing trade tensions between the United States and China could disrupt their business. In contrast, Intel’s chip-making hubs are primarily in the United States, allowing domestic semiconductor companies to send chip orders to these facilities and bypass trade restrictions.
Despite losing the top semiconductor title, Intel generated revenues of $12.7 billion in the first quarter of 2025, outpacing arch-rival Advanced Micro Devices, Inc.’s (AMD - Free Report) $7.4 billion. This serves as a clear indication that Intel is making strides in the semiconductor industry and is well-positioned for a comeback.
Last but not least, Lip-Bu Tan’s appointment as the CEO of Intel has been well-received by market pundits, as his stint in the semiconductor industry has been productive. Tan’s initiatives to streamline operations, deliver a competitive AI platform, and spin-off assets would restore stability at Intel and help the company return to its past glory.
Is Intel Stock Worth Buying Now?
With Lip-Bu Tan leading Intel’s foundry recovery and AI accelerators gaining ground among competitors through cost advantages, holding onto INTC stock seems judicious. Intel’s business revival is becoming more probable, and brokers are showing optimism by increasing the short-term price target for INTC to $22.42 (up 9.5%) from $20.48. The highest target is $62, indicating a potential 202.7% upside.
Image Source: Zacks Investment Research
However, Intel’s net profit margin is negative at 36.2%, while the Semiconductor - General industries have a margin of 49.5%, suggesting financial instability due to expenses surpassing revenues. Therefore, new entrants, for now, should wait for improved financials before considering INTC stock.
Image: Bigstock
Is Intel the Turnaround Stock of 2025 and a Buy Now?
Key Takeaways
Intel Corporation (INTC - Free Report) stock plunged 70% post chip foundry venture, yet Lip-Bu Tan’s appointment as new CEO and recent 10% stock rise hint at a potential turnaround. Is it a good buy now? Let’s see.
Intel May Rebound in 2025 for Four Key Reasons
Both Intel and NVIDIA Corporation (NVDA - Free Report) produce graphics processing units (GPUs) that are essential for modern computing, including machine learning and artificial intelligence (AI). However, NVIDIA’s CUDA software and Blackwell chips are highly sought after by developers and customers. The superior products from NVIDIA have allowed the company to secure a substantial share in most major AI segments, including data centers (read more: Is NVIDIA's Rise in Value a Sign to Invest in NVDA Stock?).
Of course, it’s challenging for Intel to compete with NVIDIA, but the former has more room to grow with a market capitalization of under $100 billion compared to NVIDIA’s $3 trillion plus. Moreover, Intel’s affordable AI accelerators can rival NVIDIA’s. Intel is spending billions of dollars on enhancing its AI capabilities and may enter the market with energy-efficient chips.
In the last two years, Intel has spent over $50 billion on upgrading its chip-manufacturing facilities. Such staggering infrastructure costs have made investors nervous due to the unprofitable foundry business. Intel’s foundry business continues to face tough competition from the likes of Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , or TSMC, and Samsung.
However, TSMC and Samsung located in Southeast Asia, have manufacturing centers in China. The ongoing trade tensions between the United States and China could disrupt their business. In contrast, Intel’s chip-making hubs are primarily in the United States, allowing domestic semiconductor companies to send chip orders to these facilities and bypass trade restrictions.
Despite losing the top semiconductor title, Intel generated revenues of $12.7 billion in the first quarter of 2025, outpacing arch-rival Advanced Micro Devices, Inc.’s (AMD - Free Report) $7.4 billion. This serves as a clear indication that Intel is making strides in the semiconductor industry and is well-positioned for a comeback.
Last but not least, Lip-Bu Tan’s appointment as the CEO of Intel has been well-received by market pundits, as his stint in the semiconductor industry has been productive. Tan’s initiatives to streamline operations, deliver a competitive AI platform, and spin-off assets would restore stability at Intel and help the company return to its past glory.
Is Intel Stock Worth Buying Now?
With Lip-Bu Tan leading Intel’s foundry recovery and AI accelerators gaining ground among competitors through cost advantages, holding onto INTC stock seems judicious. Intel’s business revival is becoming more probable, and brokers are showing optimism by increasing the short-term price target for INTC to $22.42 (up 9.5%) from $20.48. The highest target is $62, indicating a potential 202.7% upside.
Image Source: Zacks Investment Research
However, Intel’s net profit margin is negative at 36.2%, while the Semiconductor - General industries have a margin of 49.5%, suggesting financial instability due to expenses surpassing revenues. Therefore, new entrants, for now, should wait for improved financials before considering INTC stock.
Image Source: Zacks Investment Research
Intel has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.