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Intel (INTC) has been the best-performing semiconductor stock in 2025, a dramatic reversal from 2024 when it was the Philadelphia Semiconductor Index’s worst performer. Intel’s shares fell 60% last year but now are nearly 30% higher year to date, outpacing rivals Nvidia (NVDA) and Broadcom (AVGO). Investors are growing more confident in the strategic turnaround of Intel, its new management, and the potential for a resurgence of semiconductor manufacturing in the United States.
Intel’s turnaround gained steam with the hiring of former board member Lip-Bu Tan as CEO, which was a shift toward operational efficiency. The company remains deeply unprofitable, but investors are optimistic that a new strategy emphasizing AI and chip production will drive a turnaround in the long run. The question now is if the recent rally is sustainable given the company’s ongoing financial struggles.
About Intel Stock
Intel (INTC) is a global leader in semiconductor manufacturing that designs and fabricates microprocessors, data center chips, and AI-driven computing solutions. It is headquartered in Santa Clara, California, and has a large network of fabrication facilities around the globe.
Intel shares have been extremely volatile, having traded in a 52-week range of $18.51 to $45.41. The stock recovered heavily after hitting a low in late 2024 and is now trading near $26, up 29% on the year. Despite the recent upswing, though, Intel remains far from its highs, a reflection of fears over its losses of market share to Taiwan Semiconductor (TSM) and Advanced Micro Devices (AMD).
Investors still have concerns regarding Intel’s valuation. The stock has a price-sales ratio of 1.96x, which is much less than high-growth semiconductor stocks such as Nvidia but in line with its persistent profitability issues.
The price-book ratio of Intel is 0.98x, and its return on equity is -3.27%, which indicates the struggles of a firm that is seeking to find its footing again. The profit margins of the company remain severely negative at -35.32%, indicating the challenges it is facing in implementing its turnaround plan.
Intel Stock Beats Earnings Estimates
Intel reported a loss per share of $0.03 in the fourth quarter of 2024, better than the Wall Street estimate of -$0.04. This beat, however, keeps the company firmly in the red, reporting a yearly loss of $18.8 billion. Investors closely listen for evidence that the company is trending back toward profitability as it makes progress on its strategic initiatives.
The company has struggled with earnings over the past year. In the first quarter of 2024, Intel posted EPS of -$0.09, missing expectations by a wide margin. In the second quarter, the company reported -$0.38, worse than the estimated -$0.11. The third quarter saw a steep loss of -$3,.88, significantly missing the forecast. In the final quarter of the year, however, Intel showed signs of stabilization, reporting -$0.03 versus an expected -$0.04.
In spite of its recent setbacks, its strategic focus on AI chips and state-supported semiconductor fabrication is a path to potential long-term success. It is investing heavily in local chip fabrication to wean itself off Taiwan and China.
What Do Analysts Anticipate for Intel Stock?
Analysts have a consensus “Hold” recommendation. The sentiment has improved a bit, but most analysts remain cautious due to continued losses at Intel and competitive risks from Taiwan Semiconductor and AMD.
The analyst consensus has been fairly stable over the period of the last three months. Three months earlier, Intel’s rating stood at 2.76, while now it is at 2.78. 31 analysts recommend it as a “Hold,” one as a “Strong Buy,” and five as a “Strong Sell” rating.
The consensus target on Intel is $24.43, which is lower than its current trading price. The highest analyst target is $62, nearly 138% higher than its current price.
