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Intel (INTC)
NASDAQ:INTC
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Intel
(NASDAQ:INTC)54Neutral
Positive Factors
Government Policy
Intel's foundry business is potentially gaining momentum under a renewed push by the Trump administration to bring AI chip production to the US.
Leadership and Strategy
New leadership seems more cognizant of the hurdles, with decisions and commitments more grounded in reality than before, potentially offering a clearer lens to evaluate the situation.
Negative Factors
Market Share and Competition
Intel is facing multiple challenges including loss of server-AI-PC share, lacking AI traction, and the transition to a foundry model, which are all pressuring execution.
Intel (INTC) vs. S&P 500 (SPY)
Market Cap
$92.36B
Dividend Yield2.34%
Average Volume (3M)111.66M
Price to Earnings (P/E)―
Beta (1Y)2.15
Revenue Growth-2.08%
EPS Growth-1212.72%
CountryUS
Employees108,900
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-4.37
Shares Outstanding4,330,000,000
10 Day Avg. Volume114,983,805
30 Day Avg. Volume111,660,128
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.85
Price to Cash Flow (P/CF)7.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.69Price Target Upside9.03% Upside
Rating ConsensusHold
Number of Analyst Covering31
Intel Business Overview & Revenue Model
Company DescriptionIntel manufactures and sells microprocessors, chipsets, flash memory as well as other products and platforms for compute, storage, network and other functions. The company’s data-centric businesses include Data Center Group (DCG), Internet of Things (IOTG), Mobileye, Non-volatile Memory Solutions Group (NSG), Programmable Solutions Group (PSG), with the PC-centric business comprised of Client Computing Group (CCG). It derives a majority of its revenue from platform products, which incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or multichip package.
How the Company Makes MoneyIntel generates revenue through the sale of its semiconductor products, which are integral to computing and data processing devices. The company's primary revenue streams come from its Client Computing Group, which provides processors for personal computers and mobile devices, and its Data Center Group, which offers processors and solutions for servers and network infrastructure. Intel also earns from its Internet of Things Group, offering chips and related products for connected devices. Additionally, Intel's Non-Volatile Memory Solutions Group contributes to revenue through storage solutions. Strategic partnerships with original equipment manufacturers (OEMs) and technology companies further bolster Intel's earnings, as do investments in research and development to maintain technological leadership in the semiconductor industry.
Intel Financial Statement Overview
Summary
Intel faces significant challenges as evidenced by declining revenues and profitability. Despite maintaining a strong equity base, increased leverage and negative cash flows highlight potential areas of concern. Strategic adjustments are necessary to address operational inefficiencies and improve financial health.Income Statement
Intel's revenue has been declining over the past three years, with a significant drop from $79.02 billion in 2021 to $53.10 billion in 2024. Gross profit margin has also decreased, indicating increased cost pressures. The company reported a net loss in 2024, leading to a negative net profit margin. The negative EBIT and EBITDA margins in 2024 highlight operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a stable equity ratio over the years, with stockholders' equity remaining robust. However, the debt-to-equity ratio has increased slightly, indicating higher leverage. The return on equity has deteriorated due to negative net income, which poses a risk if not addressed.55
Neutral
Cash Flow
Operating cash flow has decreased, reflecting operational challenges. However, the company has maintained cash reserves. Free cash flow remains negative, suggesting ongoing capital expenditure or cash flow management issues. This is a concern if the trend continues without strategic adjustments.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 53.10B | 54.23B | 63.05B | 79.02B | 77.87B | Gross Profit |
| 17.34B | 21.71B | 26.87B | 43.81B | 43.61B | EBIT |
| -11.68B | 93.00M | 2.33B | 19.46B | 23.68B | EBITDA |
| 1.20B | 11.24B | 15.61B | 33.87B | 36.12B | Net Income Common Stockholders |
| -18.76B | 1.69B | 8.01B | 19.87B | 20.90B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.06B | 25.03B | 28.34B | 28.41B | 23.89B | Total Assets |
| 196.49B | 191.57B | 182.10B | 168.41B | 153.09B | Total Debt |
| 50.01B | 49.28B | 42.05B | 38.10B | 36.40B | Net Debt |
| 41.76B | 42.20B | 30.91B | 33.27B | 30.54B | Total Liabilities |
| 91.45B | 81.61B | 78.82B | 73.02B | 72.05B | Stockholders Equity |
| 99.27B | 105.59B | 101.42B | 95.39B | 81.04B |
| Cash Flow | Free Cash Flow | |||
| -15.66B | -14.28B | -9.62B | 9.13B | 20.93B | Operating Cash Flow |
| 8.29B | 11.47B | 15.43B | 29.46B | 35.38B | Investing Cash Flow |
| -18.26B | -24.04B | -10.23B | -25.17B | -20.80B | Financing Cash Flow |
| 11.14B | 8.51B | 1.11B | -6.21B | -12.92B |
Intel Technical Analysis
Negative
20.81
Price Trends
21.17
Negative
22.06
Negative
24.27
Negative
Market Momentum
0.34
Positive
42.94
Neutral
8.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTC, the sentiment is Negative. The current price of 20.81 is below the 20-day moving average (MA) of 22.78, below the 50-day MA of 21.17, and below the 200-day MA of 24.27, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INTC.
Intel Risk Analysis
Intel disclosed 36 risk factors in its most recent earnings report. Intel reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $173.83B | 16.80 | 39.27% | 2.17% | 12.13% | 36.17% | |
75 Outperform | $2.83T | 39.48 | 91.87% | 0.03% | 114.20% | 146.26% | |
73 Outperform | $161.82B | 97.92 | 2.85% | ― | 13.69% | 91.75% | |
70 Outperform | $177.37B | 37.50 | 28.39% | 2.74% | -10.72% | -26.60% | |
67 Neutral | $878.27B | 151.86 | 8.71% | 1.16% | 43.99% | -62.55% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
54 Neutral | $92.36B | ― | -18.89% | 2.34% | -2.08% | -1212.72% |
* Technology Sector Average
Performance Comparison
INTC
Intel
20.81
-23.24
-52.76%
AMD
Advanced Micro Devices
101.67
-108.96
-51.73%
AVGO
Broadcom
191.58
58.38
43.83%
NVDA
Nvidia
117.30
28.62
32.27%
QCOM
Qualcomm
158.49
-6.99
-4.22%
TXN
Texas Instruments
195.57
28.38
16.97%
Intel Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 4.00% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Intel beat its revenue and EPS guidance for Q4 2024 and made progress in its Intel Foundry Services. However, challenges remain in the AI data center market, competitive pressures are affecting margins, and significant financial losses in the foundry segment persist. The company is focusing on product innovation and partnerships to improve its market position.Highlights
Revenue and EPS Beat Expectations
Intel delivered revenue, gross margin, and EPS above guidance for Q4 2024. Revenue was $14.3 billion, up 7% sequentially, which was at the high end of the range provided in October.
Intel Foundry Progress
Intel Foundry achieved key grant-related milestones, receiving $1.1 billion in Q4 and an additional $1.1 billion in January from the U.S. Department of Commerce, as part of a grant agreement up to $7.86 billion.
Positive Market Position in AI PC CPUs
Intel maintained a strong position in the AI PC CPU market, with plans to ship more than 100 million systems by the end of 2025.
Panther Lake and Nova Lake Launch
Intel is on track to launch Panther Lake, its lead product on Intel 18A, in the second half of 2025, with Nova Lake planned for 2026, promising better performance and margins.
Lowlights
Weakness in AI Data Center Market
Intel is not currently participating in the cloud-based AI data center market in a meaningful way and has tempered expectations on Falcon Shores, focusing instead on Jaguar Shores.
Revenue Decline and Market Competition
Guidance for Q1 2025 indicates a revenue decline between 11% to 18% sequentially, citing macro uncertainty, seasonality, and increased competition across all segments.
Gross Margin Pressure
Non-GAAP gross margin for Q4 was 42.1%, with expectations for pressure in 2025 due to product mix and increased competition in client and data center segments.
Intel Foundry Financial Losses
Intel Foundry reported a $2.3 billion operating loss in Q4, with overall losses of more than $13 billion in 2024, and is targeting break-even operating income by the end of 2027.
Company Guidance
In the fourth quarter of 2024, Intel exceeded its guidance for revenue, gross margin, and EPS. The company reported $14.3 billion in revenue, a 7% sequential increase, with non-GAAP gross margins reaching 42.1%, surpassing expectations by 260 basis points. This was driven by robust performance in Intel Products, which saw $13 billion in revenue, up 7% sequentially, with strong contributions from CCG, DCAI, and NEX segments. Intel Foundry also reported $4.5 billion in revenue, with an improved operating loss due to an enhanced EUV wafer mix, which grew from 1% in 2023 to over 5% in 2024. Looking ahead, Intel provided Q1 2025 guidance with revenue expectations ranging from $11.7 billion to $12.7 billion, a non-GAAP gross margin of approximately 36%, and break-even EPS. The company continues to focus on improving execution and operational efficiency, with a target to achieve break-even operating income for Intel Foundry by the end of 2027.Intel Corporate Events
Executive/Board Changes
Intel Appoints Michelle Johnston Holthaus as CEO
Neutral
Feb 28, 2025
On December 1, 2024, Intel appointed Michelle Johnston Holthaus as CEO of the Intel Products business. Her compensation package, effective January 1, 2025, includes a $1,000,000 annual salary, a $2,000,000 cash bonus target, and a $16,000,000 long-term incentive equity award. Additionally, she received a one-time $5,000,000 restricted stock units award. The agreement also provides severance benefits if she resigns under specified conditions within two years of a new CEO’s appointment.
Executive/Board ChangesBusiness Operations and Strategy
Intel Enhances Board with Industry Veterans
Positive
Dec 5, 2024
Intel Corporation has appointed industry veterans Eric Meurice and Steve Sanghi to its board of directors, bringing their extensive leadership experience from ASML Holding and Microchip Technology, respectively. Known for driving significant shareholder value and strategic growth in the semiconductor sector, both are set to offer valuable insights as Intel continues its corporate transformation and innovation in process technology. Their independent directorship is expected to bolster Intel’s competitive edge and profitability in the evolving market landscape.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.