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 vs. HubSpot: Which AI-Driven Tech Stock Has More Upside?
Read MoreHide Full Article
Key Takeaways
Intel shifts from PCs to AI-driven chips, launching Core Ultra with neural processing for efficiency.
HubSpot integrates AI tools and acquisitions like Clearbit and Frame AI to strengthen its platform
INTC EPS is estimated to rise 215% in fiscal 2025, while HUBS is expected to see 17% EPS growth.
Intel Corporation (INTC - Free Report) and HubSpot, Inc. (HUBS - Free Report) are two premier tech firms that are leaning heavily into AI (artificial intelligence) for sustenance. Intel, reportedly the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses, such as AI and autonomous driving. The foundry operating model is a key component of the company's strategy and is designed to reshape operational dynamics and drive greater transparency, accountability and focus on costs and efficiency.
HubSpot is increasingly focusing on collecting and enriching customers with extensive, unified data pulled from website visits, marketing e-mails, sales calls and more. The acquisition of Clearbit, a B2B data provider for marketing intelligence, has further accelerated its vision. The integration of Clearbit premier information pool with HubSpot AI has facilitated the development of more powerful, advanced and accurate AI capabilities. The adoption of advanced AI tools, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers.
The Case for Intel
Intel has launched AI chips for data centers and PCs. This marks one of the largest architectural shifts for the company in 40 years. The strategic decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics. The company has unveiled Intel Core Ultra featuring the neural processing unit, which enables power-efficient AI acceleration with 2.5x better power efficiency than the previous generation. With superior graphics processing unit (GPU) and CPU capabilities, it is capable of speeding up AI solutions. The company also introduced the new vPro platform with Intel Core Ultra processor that delivers enhanced power efficiency. With dedicated AI acceleration capability spread across the central processing unit, GPU and the new neural processing unit, it will unlock an endless new wave of AI experiences across all apps.
Intel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. The company has witnessed healthy traction in AI PCs, which have taken the market by storm and remain firmly on track to ship more than 100 million by the end of 2025. Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future.
However, Intel derives a significant part of its revenues from China. As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. The company is also lagging behind in the GPU and AI front compared to peers such as NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . Leading technology companies are reportedly piling up NVIDIA’s GPUs to build clusters of computers for their AI work, leading to exponential revenue growth.
The Case for HubSpot
HubSpot has integrated HubSpot AI across its entire product suites and customer platform, enabling users to leverage AI features at no additional cost. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. The seat pricing model lowers the barrier for customers to get started with HubSpot and mitigates pricing friction for upgrades. The model intends to encourage more clients to adopt HubSpot services and expand their usage over time. It is anticipated to lead to healthier customer cohorts and is expected to contribute positively to the company's growth over time.
The company is embedding generative AI into its CRM, marketing and sales automation tools. The buyout of Frame AI, an AI-powered conversation intelligence platform, has accelerated its ability to unify structured and unstructured data across the customer journey at scale. This will empower go-to-market teams to transform conversations into actionable intelligence. The One HubSpot initiative is a key growth driver. In addition, HubSpot's App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect the integrations to grow their businesses. As companies prioritize a digital-first approach, it is likely to create more opportunities for developers to build new integrations that support every stage of the customer journey.
Although the introduction of $20 per month marketing starter pack will help HubSpot to attract new customers, the low-priced pack will likely dent the average sale revenue per customer growth rate at least in the near term. Despite having limited features, the pack can lead to cannibalization of the premium products. Moreover, growing investments in data center infrastructure, sales & marketing and research & development continue to strain margins. Despite the increasing top line, mounting losses do not augur well for investor confidence. Reduced spend from small and medium-sized businesses amid a challenging business environment and macroeconomic headwinds remains a concern.
How Do Zacks Estimates Compare for INTC & HUBS?
The Zacks Consensus Estimate for Intel’s 2025 sales implies a year-over-year decline of 1.7%, while that of EPS indicates growth of 215.4%. The EPS estimates have been trending southward (down 46.4%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HubSpot’s fiscal 2025 sales suggests year-over-year growth of 17.4%, while that for EPS implies a rise of 16.9%. The EPS estimates have been trending northward (up 1.5%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of INTC & HUBS
Over the past year, Intel has gained 17.2% compared with the industry’s growth of 37.8%. HubSpot has lost 8.6% over the same period.
Image Source: Zacks Investment Research
Intel looks more attractive than HubSpot from a valuation standpoint. Going by the price/sales ratio, Intel’s shares currently trade at 1.93 forward sales, significantly lower than 7.08 for HubSpot.
Both companies expect their earnings to improve in 2025. Long-term earnings growth expectations for HUBS and INTC are 19.5% and 7.1%, respectively. HubSpot is a bit expensive in terms of valuation metrics compared to Intel. However, Intel expects a decline in revenues, contrary to that of HubSpot. Consequently, with a slight edge, HubSpot seems to be a better investment option at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Intel vs. HubSpot: Which AI-Driven Tech Stock Has More Upside?
Key Takeaways
Intel Corporation (INTC - Free Report) and HubSpot, Inc. (HUBS - Free Report) are two premier tech firms that are leaning heavily into AI (artificial intelligence) for sustenance. Intel, reportedly the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses, such as AI and autonomous driving. The foundry operating model is a key component of the company's strategy and is designed to reshape operational dynamics and drive greater transparency, accountability and focus on costs and efficiency.
HubSpot is increasingly focusing on collecting and enriching customers with extensive, unified data pulled from website visits, marketing e-mails, sales calls and more. The acquisition of Clearbit, a B2B data provider for marketing intelligence, has further accelerated its vision. The integration of Clearbit premier information pool with HubSpot AI has facilitated the development of more powerful, advanced and accurate AI capabilities. The adoption of advanced AI tools, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers.
The Case for Intel
Intel has launched AI chips for data centers and PCs. This marks one of the largest architectural shifts for the company in 40 years. The strategic decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics. The company has unveiled Intel Core Ultra featuring the neural processing unit, which enables power-efficient AI acceleration with 2.5x better power efficiency than the previous generation. With superior graphics processing unit (GPU) and CPU capabilities, it is capable of speeding up AI solutions. The company also introduced the new vPro platform with Intel Core Ultra processor that delivers enhanced power efficiency. With dedicated AI acceleration capability spread across the central processing unit, GPU and the new neural processing unit, it will unlock an endless new wave of AI experiences across all apps.
Intel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. The company has witnessed healthy traction in AI PCs, which have taken the market by storm and remain firmly on track to ship more than 100 million by the end of 2025. Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future.
However, Intel derives a significant part of its revenues from China. As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. The company is also lagging behind in the GPU and AI front compared to peers such as NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . Leading technology companies are reportedly piling up NVIDIA’s GPUs to build clusters of computers for their AI work, leading to exponential revenue growth.
The Case for HubSpot
HubSpot has integrated HubSpot AI across its entire product suites and customer platform, enabling users to leverage AI features at no additional cost. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. The seat pricing model lowers the barrier for customers to get started with HubSpot and mitigates pricing friction for upgrades. The model intends to encourage more clients to adopt HubSpot services and expand their usage over time. It is anticipated to lead to healthier customer cohorts and is expected to contribute positively to the company's growth over time.
The company is embedding generative AI into its CRM, marketing and sales automation tools. The buyout of Frame AI, an AI-powered conversation intelligence platform, has accelerated its ability to unify structured and unstructured data across the customer journey at scale. This will empower go-to-market teams to transform conversations into actionable intelligence. The One HubSpot initiative is a key growth driver. In addition, HubSpot's App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect the integrations to grow their businesses. As companies prioritize a digital-first approach, it is likely to create more opportunities for developers to build new integrations that support every stage of the customer journey.
Although the introduction of $20 per month marketing starter pack will help HubSpot to attract new customers, the low-priced pack will likely dent the average sale revenue per customer growth rate at least in the near term. Despite having limited features, the pack can lead to cannibalization of the premium products. Moreover, growing investments in data center infrastructure, sales & marketing and research & development continue to strain margins. Despite the increasing top line, mounting losses do not augur well for investor confidence. Reduced spend from small and medium-sized businesses amid a challenging business environment and macroeconomic headwinds remains a concern.
How Do Zacks Estimates Compare for INTC & HUBS?
The Zacks Consensus Estimate for Intel’s 2025 sales implies a year-over-year decline of 1.7%, while that of EPS indicates growth of 215.4%. The EPS estimates have been trending southward (down 46.4%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HubSpot’s fiscal 2025 sales suggests year-over-year growth of 17.4%, while that for EPS implies a rise of 16.9%. The EPS estimates have been trending northward (up 1.5%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of INTC & HUBS
Over the past year, Intel has gained 17.2% compared with the industry’s growth of 37.8%. HubSpot has lost 8.6% over the same period.
Image Source: Zacks Investment Research
Intel looks more attractive than HubSpot from a valuation standpoint. Going by the price/sales ratio, Intel’s shares currently trade at 1.93 forward sales, significantly lower than 7.08 for HubSpot.
Image Source: Zacks Investment Research
INTC or HUBS: Which is a Better Pick?
Both Intel and HubSpot carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their earnings to improve in 2025. Long-term earnings growth expectations for HUBS and INTC are 19.5% and 7.1%, respectively. HubSpot is a bit expensive in terms of valuation metrics compared to Intel. However, Intel expects a decline in revenues, contrary to that of HubSpot. Consequently, with a slight edge, HubSpot seems to be a better investment option at the moment.