From Yahoo Finance: 2025-05-10 17:45:00

In the chip space, many stocks have seen significant price increases. Intel stock has plummeted over 30% in the past few years and is trading at a 15-year low, signaling a lack of confidence from Wall Street in its future growth potential. Semiconductor stocks have surged due to the AI revolution, with companies like Nvidia and Broadcom experiencing substantial gains.

Since the commercial release of ChatGPT on Nov. 30, 2022, shares of Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing have skyrocketed by 592%, 272%, and 110%, respectively. The VanEck Semiconductor ETF has also seen a 93% total return over the same period. However, Intel has struggled, with a 32% decline since ChatGPT’s launch.

While some semiconductor stocks have flourished, others like Intel have lagged behind. Intel’s foundry business has raised concerns, with a $13.4 billion operating loss in 2024 and a 7% decline in revenue. Despite a 7% revenue increase in the first quarter of 2025, growth may decelerate in the future.

Intel faces challenges in competing with Taiwan Semi and operating a profitable foundry practice. Its market share is shrinking, and the company’s foundry segment has been inconsistent and unpredictable amidst rising competition. The recent sell-off in Intel’s stock may be justified given its current status in turnaround mode.

Wall Street estimates suggest minimal revenue and earnings growth for Intel in the near future, making it a speculative stock. Intel’s foundry business struggles to keep up with competitors like TSMC, leading to uncertainty about its future performance. Investors should carefully consider the risks before investing in Intel.

As Intel grapples with market challenges and leadership changes, it may not be the best investment choice. The Motley Fool Stock Advisor team has identified 10 stocks for potential high returns, excluding Intel. Past recommendations like Netflix and Nvidia have yielded significant profits, underscoring the value of thorough research before investing.



Read more at Yahoo Finance: Is Intel Stock a Buy Right Now?