We continue our popular series “Is … a Good Stock to Buy in 2025.” Next up is Intel (ticker: INTC)! The legendary chipmaker that dominated PC processors for many years. However, over the past few years, the company has faced serious challenges. It has lost market share in high-performance solutions and fallen behind in the AI race. Now, INTC shares are back in the spotlight due to talks of a potential split, so let’s see how the company is doing at the beginning of 2025. And, of course, let’s answer the question: is Intel a good stock to buy now or a strong sell?
Key Market Metrics – February 2025
Since the start of 2025, Intel’s stock price has gained more than 30%. Investors have become noticeably more active following rumors of a possible split involving TSMC (TSM) and Broadcom (AVGO). As of February 18, Intel shares are trading in the $26–$27 range, with a market capitalization of $115 billion. The P/E ratio is around ~ -4.38 (a negative figure indicating losses in recent reporting periods). The beta factor is approximately ~1.07 (indicating slightly higher volatility than the overall market).
Financial Results Q4 2024: Key Facts
According to the report for the fourth quarter of 2024, revenue was $14.26 billion (surpassing the LSEG forecast of $13.81 billion). Adjusted earnings per share (EPS) came in at 13 cents (versus the expected 12 cents). Net loss amounted to $126 million (or -3 cents per share), compared to $2.67 billion in profit a year earlier.
The results were better than the most pessimistic forecasts, but the overall backdrop remains challenging. INTC continues to lose market share in various segments, and new AI solutions have yet to show sufficient growth.
It is also important to note that Intel (INTC) provided a weak outlook for the first quarter of 2025. The company expects revenue of $11.7–$12.7 billion, while the market had anticipated around $12.87 billion. Intel plans to remain “around break-even” on earnings by cutting costs and optimizing operations.
Why is Intel a Good Stock to Buy Now?
It has high “reset” potential. Intel (INTC) retains impressive resources and an engineering base. The company has invested billions of dollars to expand production facilities in the U.S. and Europe. If rumors about a partnership with TSMC (TSM) prove true, Intel (INTC) may benefit from “outsourcing.”
A possible business split. According to Bloomberg, the product division could fall under Broadcom (AVGO), while the fabs would go to TSMC (TSM). If this happens, Intel (INTC) would effectively become a fabless company, removing a number of financial burdens and optimizing its cost structure. Such “breakups” can sometimes spur the rebirth of large corporations.
Government support (Biden-Harris Administration). In the fourth quarter, Intel (INTC) signed a grant agreement worth $7.86 billion with the U.S. government. This is intended to support factories in four states. Over the long term, it could strengthen the company’s position.
A potential foothold in the AI market. The company announced a new initiative called “Jaguar Shores.” If Intel (INTC) succeeds in launching competitive AI solutions in time, it has a chance to regain some market share in AI accelerators.
Possible Risks and Challenges
Mixed financial trends. The negative P/E, fourth-quarter loss, and weak forecasts are concerning. Investors are betting on a future return to profitability, but beyond the share price rally driven by speculation, there is not much solid evidence of a turnaround.
Uncertainty around the TSMC and Broadcom deal. It’s important to remember that regulators can intervene when it comes to major mergers and acquisitions. There are no guarantees the parties will reach an agreement.
Fierce competition. AMD is steadily strengthening its position in the server segment, and Nvidia (NVDA) dominates in AI and GPU solutions.
Technological risks. Intel (INTC) has delayed advanced process adoption for many years. If the release of chips using the 18A node is delayed again or proves unprofitable, its competitive lag will only worsen.
Macroeconomic and tariff factors. Chip supplies depend on global chains, which are influenced by geopolitical tensions and potential tariffs. Any restrictions could hit Intel (INTC) harder than companies without their own fabs.
Is Intel a Good Stock to Buy Now?
In summary, INTC shares remain a roller coaster. Ultimately, it depends on how strongly you believe in the rumored split. Remember, if it doesn’t materialize, the stock could tumble by more than 10–20% (or even more) in a single day. You could wait for clearer signals from Intel’s management.
Still, if you’re willing to give Intel (INTC) a chance and consider buying, it might become an interesting long-term asset.
As for our perspective, we believe a split is possible. After weighing the pros and cons, we rate INTC as a HOLD and a modest BUY. However, we’re not prepared to risk more than 10% of our portfolio on it, since it may turn out to be pure speculation. If you were curious about INTC we recommend reading about Palantir (PLTR) and Reddit (RDDT).
This article is for informational purposes only and does not constitute financial advice. The content reflects the author’s opinion and should not be interpreted as an investment recommendation.
