Intel (INTC) Stock Forecast & Price Target

Intel's recent quarterly revenue reached $4.5 billion, marking a 3.4% sequential increase, attributed to a higher mix of extreme ultraviolet (EUV) wafers and improved equipment sales driven by returning demand in the data center and edge business. The expansion into the foundry segment, along with the growing EUV wafer mix, is expected to enhance gross margins, which positions Intel for improved profitability moving forward. Additionally, favorable macroeconomic conditions and the potential upside from data-centric businesses and PC sales position the company for continued growth and market leadership in the semiconductor industry.

Intel's stock outlook remains negative due to several fundamental concerns, including elevated valuation metrics, declining revenue estimates, and intensified competition in both core and non-core markets. The company experienced significant downward revisions for its guidance in 1Q25, projecting revenue to reach $12.2 billion, which reflects a 14.4% quarter-over-quarter decline and a 4.1% year-over-year reduction, both falling short of internal and market expectations. Furthermore, Intel's gross margin (GM) is anticipated to drop to 36% in 1Q25, substantially lower than projected benchmarks, indicating persistent profitability challenges amidst stagnant revenue contributions from its foundry business.