Shares of Intel (INTC 9.25%) were a massive disappointment in 2024. Multiple missteps culminated with the surprise retirement of CEO Pat Gelsinger late last year, and the company is now led by interim co-CEOs without a clear strategy.
Intel's market cap has stagnated for 30 years, but deep value exists due to its core CPU segment and potential for a turnaround. The CPU market remains profitable with limited competition, and any improvement in Intel's other businesses could create significant value. Whether the M&A happens or not, this could have strategic changes or management shake-ups at Intel that benefit shareholders.
Intel's upcoming Q4 earnings could mark a turning point, with focus on restructuring progress and Gaudi®3 AI accelerator up-scaling. Low expectations set the stage for potential outperformance in 2025, with Intel possibly returning to profitability and achieving a stock re-rating. Intel's restructuring and impairment charges have weighed heavily, but positive news on Gaudi®3 could trigger a strong price reaction.
My Fiscal 2027 stock price target of $31 implies a 17% CAGR, driven by a forecasted $60 billion revenue, 12.5% net income margin, and conservative valuation multiples. Despite operational weakness, Intel's undervalued stock offers potential for 30-40% returns over a 1-year horizon, contingent on 2025 earnings as a catalyst for revaluation. Leadership uncertainty, fragile manufacturing strategy, and competitive disadvantages position Intel as a riskier trade, with a logical "Buy" rating for short-term value trading, not long-term holding.
Intel (INTC) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
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Stacy Rasgon, Bernstein, joins 'Fast Money' to talk Intel seeing its best trading day since August, what's next for the company, and more.
Major U.S. equities indexes pushed higher to end the week, with traders set for a day off in observation of Martin Luther King Jr. Day on a Monday that will also see the swearing-in of Donald Trump for his second presidential term.
Intel shareholders would probably rather forget 2024. This year is off to a better start.
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Intel Corp INTC stock gained Friday on reports claiming that the struggling chipmaker is an acquisition target. The stock has plunged 54% in the last 12 months.
Intel Corp (NASDAQ: INTC) popped as much as 10% on Friday following a SemiAccurate report that a new name is now interested in taking over the US-based semiconductor manufacturer. The news website added that the mainstream media has not previously indicated that this unnamed potential acquirer is interested in buying INTC.