Intel stock expected to perform well in 2025 due to new products and U.S. manufacturing boost.
From Nasdaq: 2024-12-04 23:57:11
Intel stock (NASDAQ: INTC) is expected to have a crucial year in 2025. With a more compelling product portfolio and a recovery in demand, Intel’s CPU sales are likely to pick up. Additionally, the company’s foundry business is looking to commercialize its cutting-edge 18A process, benefiting from its sizable U.S. manufacturing base under a Trump administration.
Intel’s stock performance has been volatile, with annual returns ranging from 6% to -47% in recent years. The Trefis High Quality Portfolio, on the other hand, has been less volatile and outperformed the S&P 500 consistently. Factors like stronger product lineup and recovery in CPU spending could help Intel stock rebound in the future.
Intel is set to benefit from a potential boost in U.S. manufacturing under the Trump administration. Policies such as tariffs on foreign chip manufacturers could drive more business to Intel’s foundry division. The emphasis on domestic chip production for national security reasons could also lead to more government contracts for Intel.
Intel is banking on its 18A process to revitalize its foundry business. The technology is expected to boost chip performance and efficiency, with high-profile customers like the U.S. Department of Defense, Amazon, and Microsoft already on board. If Intel successfully transitions to the 18A process, it could reshape the narrative around the stock. Intel’s new Gaudi 3 accelerator offers a more cost-effective alternative to Nvidia chips, signaling a potential shift in the market. With Intel stock trading at $24 per share and expected revenue growth of 6% next year, analysts value the stock at $27 per share. Consider Selling Nvidia and Buying AMD Stock for a favorable price-to-performance tradeoff.
Intel’s stock performance in Dec 2024 shows a 0% return for the month and a -52% return year-to-date. However, the total return since 2017 stands at 67%. In comparison, the S&P 500 had a 0% return for the month, a 26% return year-to-date, and a 169% total return since 2017. The Trefis Reinforced Value Portfolio had a 1% return for the month, a 25% return year-to-date, and an impressive 831% total return since 2016.
For more insights and market-beating portfolios, explore Trefis Price Estimates. Keep an eye on Intel’s potential turnaround scenario, which could see the stock reach $60. Remember, the views expressed are those of the author and may not reflect those of Nasdaq, Inc.
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