Over the past few years, Intel (INTC) has navigated significant headwinds, from executive turnover and foundry delays to rising investor pressure, while rivals like Advanced Micro Devices (AMD) and Nvidia (NVDA) captured market‑leading gains. Yet Intel’s vast manufacturing footprint and deep R&D engine continue to anchor solid PC and data‑center demand.

Now, Intel is winding down its in‑house automotive unit and laying off most of its staff, though it will honor existing contracts. This unit, once tasked with designing vision‑processing and advanced driver‑assistance systems (ADAS) chips, struggled against leaner, more specialized competitors. Moving forward, Intel plans to rely on its equity position in Mobileye (MBLY) for autonomous‑driving exposure rather than funding its own capital‑intensive auto‑chip line.

Investors should note that exiting the auto‑chip market frees up Intel to focus on higher‑margin data centers and its growing foundry services. This strategic pivot could prompt a re‑rating of INTC shares.

About Intel Stock

Based in California, Intel is a global tech company that designs and manufactures semiconductors. It focuses on client computing, data center and AI, and foundry services. It also invests in software and autonomous‑driving technology through its stake in Mobileye. The company serves customers worldwide with its innovative chips and solutions and has a market cap of around $99 billion.

Intel shares have plunged 28% over the past year as manufacturing delays, fierce competition, and sagging PC sales eroded confidence. However, in 2025, the stock hsa rebounded and is up about 12% on cost cuts, AI PC momentum, and improving data center demand, among other things. 

Even after the rally, Intel still trades at an attractive 1.85x forward sales, a roughly 40% discount to the 3x sector median, implying substantial upside potential if AI‑driven margin recovery and foundry growth materialize.

Collaborating with HP to Power Next‑Gen AI PCs

Intel has recently accelerated its AI push by collaborating with OEMs like HP to deliver next‑gen AI PCs, including the EliteBook X, EliteBook Ultra, and EliteBook 8, powered by Intel Core Ultra processors. These chips boost real‑world apps like Power BI and Tableau by up to 48% versus prior systems. Intel is aiming to ship over 100 million AI‑capable processors by year‑end.

Intel Tops Q1 Earnings Estimate

Intel kicked off Q1 2025 with flat revenue of $12.67 billion, topping consensus estimates of $12.26 billion. Its Foundry segment posted $4.7 billion in sales, up 7% and beating projections, while Intel Products revenue hit $11.8 billion, down 3% year over year. Gross margin contracted to 36.9%, down 4.1 percentage points, reflecting product‑mix shifts and cost pressures.

On the profitability front, adjusted net income landed at $580 million, a 23.6% drop year‑over‑year, and adjusted EPS came in at $0.13, down from $0.18 in Q1 2024. 

Intel generated just over $800 million in operating cash flow but posted a free cash flow burn of about $3.68 billion. At quarter‑end, cash and equivalents stood at $8.95 billion, up from $6.92 billion a year earlier.

Looking ahead, Intel guided for Q2 2025 revenue of $11.2 billion to $12.4 billion with breakeven EPS, below Wall Street’s hopes. While the company did not issue full‑year revenue targets, analysts model 2025 sales of $50.4 billion and EPS of $0.30. Intel’s cautious Q2 outlook underscores persistent market headwinds, but disciplined spending and AI focus could drive incremental margin improvements soon.

What Does Wall Street Say About Intel Stock?

Wall Street analysts have taken a cautious stance on Intel stock, assigning it a consensus “Hold” rating. Of 38 analysts, one rates it “Strong Buy,” 23 say “Hold,” and five recommend “Strong Sell.” The stock trades near its mean price target of $22.42. However, its Street-high price target of $62 implies more than 180% upside potential.

The Bottom Line

As Intel sheds its loss-making auto unit and refocuses on AI data centers, PC chips, and foundry services, it positions itself for higher margins. Execution on new products, disciplined spending and Mobileye’s autonomous upside will determine whether INTC can close its valuation discount and deliver sustained shareholder returns.