Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Feb, 26 | INTC | Buy | USD 49.2 | USD 52.0 | USD 55.0 | 16 days | Closed |
10.57%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services segments. The company's products portfolio comprises central processing units and chipsets, system-on-chips (SoCs), and multichip packages; mobile and desktop processors; hardware products comprising graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products. It also offers silicon devices and software products; and optimization solutions for workloads, such as AI, cryptography, security, storage, networking, and leverages various features supporting diverse compute environments. In addition, the company develops and deploys advanced driver assistance systems (ADAS), and autonomous driving technologies and solutions; and provides advanced process technologies backed by an ecosystem of IP, EDA, and design services, as well as systems of chips, including advanced packaging technologies, software and accelerate bring-up, and integration of chips and driving standards. Further, it delivers and deploys intelligent edge platforms that allow developers to achieve agility and drive automation using AI for efficient operations with data integrity, as well as provides hardware and software platforms, tools, and ecosystem partnerships for digital transformation from the cloud to edge. The company serves original equipment manufacturers, original design manufacturers, cloud service providers, and other manufacturers and service providers. It has a strategic agreement with Synopsys, Inc. to develop EDA and IP solutions; and ARM that enables chip designers to build optimized compute SoCs on the Intel 18A process. Intel Corporation was incorporated in 1968 and is headquartered in Santa Clara, California.
Expansion in AI and Data Center Revenue: FY25 DCAI revenue rose to USD 16.9 billion from USD 16.1 billion in FY24
Stronger Cash Generation: FY25 operating cash flow grew to USD 9.7 billion from USD 8.3 billion in FY24
Q4 Gross Margin Compression: Q4 FY25 non-GAAP gross margin declined to 37.9% from 42.1% in Q4 FY24
Client Computing Segment Decline: FY25 CCG revenue fell to USD 32.2 billion from USD 33.3 billion in FY24
Intel faces elevated execution risk from the capital-intensive foundry turnaround, where prolonged yield challenges, delayed external customer adoption, and sustained operating losses could pressure cash flows despite strong structural AI-driven demand
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 49.2 | 44.0 | 52.0 | 55.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Reset and Organizational Strengthening: During FY25, Intel undertook a broad internal transformation aimed at restoring operational discipline and execution focus, as management emphasized organizational simplification, leadership renewal, and balance sheet strengthening to create a more agile and engineering-driven enterprise. The Company also deepened strategic partnerships and monetized select assets, improving liquidity and financial flexibility while positioning itself to capture long-term semiconductor demand driven by artificial intelligence and advanced computing workloads.
Revenue Stability Amid Structural Shifts: For the full fiscal year, Intel reported consolidated revenue of USD 52.9 billion in FY25, broadly flat compared with USD 53.1 billion in FY24, reflecting strong growth in Data Center and AI products offset by softer client computing demand and the deconsolidation of Altera. While fourth-quarter revenue declined year over year to USD 13.7 billion, demand across AI infrastructure, servers, and networking continued to outpace available supply, highlighting structural growth even as near-term constraints limited revenue capture.
Margin Recovery Through Cost Discipline: Intel delivered a meaningful improvement in profitability at the full-year level, with non-GAAP gross margin rising to 36.7% in FY25 from 36.0% in FY24, supported by lower restructuring charges, operational efficiencies, and improved operating leverage. GAAP operating margin also improved sharply, narrowing losses from (22.0%) in FY24 to (4.2%) in FY25, reflecting significant cost rationalization and reduced period charges as the Company progressed through its restructuring initiatives.
AI-Led Growth in Core Computing Segments: Operationally, Intel’s Data Center and AI (DCAI) segment emerged as a key growth engine, with full-year revenue increasing to USD 16.9 billion in FY25 from USD 16.1 billion in FY24, driven by strong demand for traditional server CPUs supporting AI workloads and expanding custom ASIC engagements. Meanwhile, the Client Computing Group (CCG) generated USD 32.2 billion in FY25, modestly lower year over year, reflecting PC market normalization even as adoption of AI PCs accelerated following the launch of Intel Core Ultra Series 3 built on the advanced Intel 18A process.
Foundry Expansion with Near-Term Profit Pressure: Intel Foundry continued scaling advanced manufacturing capabilities, delivering USD 17.8 billion of revenue in FY25, up from USD 17.3 billion in FY24, supported by rising EUV wafer mix and initial production on Intel 18A nodes. However, aggressive investment and early-stage ramp inefficiencies drove operating losses exceeding USD 10.3 billion in FY25, underscoring the capital-intensive nature of rebuilding a competitive U.S.-based advanced foundry platform before meaningful external customer volume materializes.
Strengthened Liquidity and Cash Generation: From a financial resilience standpoint, Intel generated USD 9.7 billion of operating cash flow in FY25, up from USD 8.3 billion in FY24, while ending the year with USD 37.4 billion in cash and short-term investments, nearly doubling year over year. This improvement was driven by partner investments, asset monetization, government incentives, and improved second-half cash generation, providing critical funding capacity for ongoing manufacturing expansion and AI roadmap execution.
Outlook Shaped by Demand Strength and Supply Constraints: Looking into early FY26, management guided for softer near-term revenue due to acute internal supply constraints, forecasting USD 11.7–USD 12.7 billion in Q1 FY26 revenue alongside lower gross margins. While demand fundamentals remain strong across AI infrastructure and computing platforms, the Company acknowledged that yield improvements and fab efficiency remain central execution priorities to fully monetize market opportunities going forward.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Intel Corporation. (NASDAQ: INTC) at the current market price of USD 49.20, as on Feb 03, 2026 at 7:28 am PST
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| INTC Intel Corporation |
12.89 10.64% | 133.99 | 32.02 | 26.74 | 2.80 | 1.44 | 3.25 | 15.67 |
| NVDA NVIDIA Corporation |
6.04 2.95% | 210.69 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
18.45 4.70% | 411.35 | 78.55 | 35.84 | 27.93 | 23.69 | 28.47 | 52.08 |
| TSM Taiwan Semiconductor Manufacturing |
29.97 6.94% | 462.12 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
24.89 4.86% | 537.37 | 108.58 | 40.98 | 13.39 | 7.12 | 12.75 | 60.70 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on February 3, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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