Quick overview

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Intel, a long-established leader in the semiconductor industry, experienced a significant turnaround in 2025, driven by government funding, investments in artificial intelligence (AI), and a recovery in its foundry business.

The company’s stock has surged approximately 84% year-to-date (YTD), outperforming the S&P 500’s gain of about 14%.

Intel faced challenges due to manufacturing delays and intense competition from AMD and Nvidia, which severely impacted its performance.

Intel’s shares closed yesterday at $36.93, reflecting a decline of 3.78%. This recent volatility has tempered the stock’s upward rally. With a market capitalization of $176.01 billion, Intel’s stock is currently trading at $37.

The fluctuations in the stock price are attributed to geopolitical risks and broader declines within the tech sector. Moreover, the stock’s beta of 1.35 indicates that it is more volatile than the overall market, making it susceptible to changes in the tech industry.

In terms of valuation, Intel has a Price/Sales ratio of 3.04 and a Price/Book ratio of 1.81, suggesting the stock may be overpriced based on trailing metrics, but it appears more reasonable when looking ahead. Continued investments in AI and manufacturing are evident through an Enterprise Value/EBITDA ratio of 186.15.

After recording its first annual loss since 1986 in 2024, Intel’s rally in 2025 marks a stark contrast to the nearly 60% decline experienced the previous year.

Revenue reached $13.65 billion, and net income was $1.02 billion, exceeding projections and indicating growth in foundry services and AI chips. This followed a disappointing Q1 with revenue of $12.67 billion, but the company gained momentum with lower losses forecasted for Q2.  The stock had risen nearly 99% at peak, outperforming Nvidia’s approximately 50% increase, climbing from around $20 at the beginning of the year to  $39 by early November (peaking at $42). The recent decline from $39.99 on November 1 is seen as profit-taking amid Nasdaq declines.

The stock’s 5-year return of -10% underscores the need for sustained growth, while the 3-year return of +35.81% lags behind the S&P 500’s return of +78.25%.