From Nasdaq: 2025-06-11 15:00:00

Intel Corporation stock (INTC) dropped 70% after a chip foundry venture, but recent CEO appointment and 10% stock rise suggest a potential turnaround. Intel and NVIDIA both produce GPUs essential for modern computing, but NVIDIA’s superior products have led to significant market share in AI. Intel’s AI accelerators may rival NVIDIA’s, with a market cap under $100 billion compared to NVIDIA’s $3 trillion plus. Intel has spent over $50 billion in the last two years on upgrading chip-manufacturing facilities, facing tough competition from TSMC and Samsung. However, trade tensions between the US and China could disrupt their business, while Intel’s US-based manufacturing centers allow domestic companies to bypass trade restrictions. Despite losing the top semiconductor title, Intel generated $12.7 billion in revenue in Q1 2025, outpacing AMD. Lip-Bu Tan’s appointment as CEO has been well-received, with initiatives to streamline operations and deliver a competitive AI platform, indicating potential for a comeback. With Lip-Bu Tan leading Intel’s recovery and AI accelerators gaining ground, holding onto INTC stock may be wise. Brokers have increased the short-term price target for INTC, with the highest target indicating a potential 202.7% upside. However, Intel’s net profit margin is negative at 36.2%, suggesting financial instability. New entrants should wait for improved financials before considering INTC stock. Intel has a Zacks Rank #3 (Hold).



Read more at Nasdaq: Is Intel the Turnaround Stock of 2025 and a Buy Now?