Intel (INTC): Is This Tech Giant Really “Dead Money”?
The Current Landscape
In April 2025, Intel Corporation (NASDAQ: INTC) announced a bold move to cut over 20% of its global workforce under the new leadership of CEO Lip-Bu Tan. Despite delivering quarterly results that surpassed Wall Street expectations, the company’s stock continues to struggle, raising significant doubts about its long-term path forward.
Analyst Insights: The “Dead Money” Label
Susquehanna analyst Christopher Rolland has characterized Intel as “dead money” in its current form. He believes that a strategic split between Intel’s manufacturing and production divisions could potentially unlock shareholder value. With the Trump administration emphasizing the need for domestic semiconductor production, the urgency surrounding this split is palpable.
The Semiconductor Race Heats Up
Intel is making strides with its 18A process node, overcoming initial challenges. Rumors indicate that potential foundry agreements with tech giants like Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOGL) are in the works. The goal is to ramp up high-volume production by the latter half of 2025, a move that could cater to hyperscale customers and alleviate concerns regarding its client base.
Stock Performance: A Cause for Concern
Despite these developments, shares of Intel have plummeted approximately 30% from their year-to-date high. However, the stock does offer a 2.57% dividend yield, providing some cushion for investors. Rolland maintains a neutral rating, pointing out that competitors like AMD (NASDAQ: AMD) are steadily eroding Intel’s market share. He also questions the sustainability of any emerging demand for PCs.
Price Targets and Future Outlook
The average price target from 32 analysts sits at $21.31, with estimates ranging from a low of $14.00 to a high of $28.30. This implies a potential upside of over 9% from the current stock price of $19.55. Moreover, GuruFocus estimates a one-year target price of $23.65, indicating a possible upside of nearly 21% from its current valuation.
Is Intel Stock Still a Buy?
With mixed signals and a challenging competitive landscape, the critical question arises: Is Intel stock still a buy? Investors should tread carefully, weighing the potential for recovery against the backdrop of ongoing layoffs and market pressures.
Stay informed and keep an eye on Intel as it navigates these tumultuous waters—potentially unlocking value for shareholders who dare to hold on.
For more insights into investment strategies and market trends, you may explore GuruFocus.
