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Business Insider
5 days ago
- Business
- Business Insider
Intel (INTC) Investors Stay Torn Between Dead Money Doubts and Recovery Hopes
Intel's (INTC) stock has been stuck in the mud, trading at depressed, multi-year-low levels of around $22 today, all while the broader semiconductor industry is on fire, with names like NVIDIA (NVDA) and TSMC (TSM) soaring. Despite the stock appearing like a value play here, Intel's issues, such as fierce competition, a struggling foundry business, and macroeconomic headwinds, are weighing heavily. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. There are glimmers of hope, such as new AI products and cost-cutting efforts, but for now, the negatives overshadow any bullish case, making INTC a risky bet, even as a value play. Given the sorry state of affairs this stock finds itself in, I remain warily Neutral on INTC with a bearish bias. Why Intel's Stock Is Languishing Intel has been navigating a challenging period, and the bearish sentiment is far from unwarranted. AMD has steadily eroded its dominance in the CPU space, with Intel's server CPU market share falling to around 60% in 2024, down from over 80% a decade ago. Meanwhile, its foundry ambitions, aimed at rivaling TSMC, have become a financial drag. The division reported a staggering $7 billion loss on $18.9 billion in revenue in 2023, followed by another $4.3 billion in losses in 2024. The company's profit margin profile is also dismal, with gross margins at about 33% over the past 12 months, down from roughly 34%, 42%, and 45% in FY2024, FY2023, and FY2022, respectively. Geopolitical risks are another gut punch, as tariffs could further erode margin over the near to medium term. Some Reasons to Stay Hopeful Now, look, it's not all bad news. Intel's latest earnings displayed some resilience, with $12.7 billion in revenue topping estimates of $12.25 billion and adjusted EPS of $0.13, which surpassed forecasts of a break-even result. The Data Center and AI segment grew 8% year-over-year to $4.1 billion, a sign that Intel's AI pivot, including the Xeon 6 processor with a 1.9x performance leap for AI workloads and upcoming Panther Lake chips, is starting to click. Intel's also leaning into U.S. manufacturing, with $50 billion invested in domestic plants and $7.86 billion from the CHIPS Act, which could shine if U.S.-focused policies gain traction. Lip-Bu Tan, Intel's new CEO, is also bringing a fresh vibe, aiming to cut $500 million from 2025 operating expenses (down to $17 billion) and aiming for $16 billion in 2026. His push for a 'startup mindset' with less bureaucracy and more engineering could spark innovation. Intel's AI PC strategy is another potential win, with plans to ship 100 million AI PCs by year-end, assuming demand picks up. These are solid steps, but they need to deliver. Excessive Risk Suggests a Pass on INTC Despite a few encouraging signs, Intel is still falling behind in a semiconductor market that's otherwise surging. NVIDIA has a firm grip on the AI chip space, and TSMC's manufacturing edge is hard to beat. With NVIDIA's CUDA platform and Blackwell chips setting the tone, Intel's decision to outsource key products like Lunar Lake to TSMC only highlights how much ground it has to make up in its foundry ambitions. Losses are expected to persist until at least 2030, and Intel's Q2 2025 revenue guidance of $11.2-$12.4 billion fell short of the $12.82 billion consensus. Another outlook miss is likely in Q3, given macro risks, especially given the tariffs. Meanwhile, the stock's low price-to-sales ratio screams value (at 2x this year's expected sales). This is counterbalanced by a forward P/E of 78x on this year's expected earnings, which, again, reflects shaky earnings and high risk. Of course, the P/E falls to a more reasonable 29x on 2026's rebound potential to $0.80. Still, that's a high P/E ratio given the current risk Intel faces in the semiconductor landscape. Additionally, Intel's significant $28.6 billion net debt position further adds to the reasons to avoid the stock. Even if Intel manages to recover and generate noteworthy profits, it will be a while before investors see tangible capital returns, as management will likely prioritize deleveraging first. Is Intel a Buy, Sell, or Hold? Currently, analysts remain skeptical about INTC's investment case. The stock carries a Hold consensus rating, based on one Buy, 26 Holds, and four Sell ratings assigned over the past three months. Today, INTC's average stock price target of $21.60 implies roughly 5% downside potential over the next twelve months. In fact, the only bullish analyst on Wall Street is Gus Richard from Northland Securities, who expects INTC stock to hit $28 within 12 months. Intel: A Cheap Stock with a Pricey Set of Problems In short, Intel's story is one of potential buried under a mountain of problems. Yes, there are flickers of innovation and strategic pivoting, from AI PCs to domestic fabs, but execution risk remains sky-high. For every green shoot, there's a red flag, like underwhelming guidance, foundry losses, stiff competition, and debt that can't be ignored. At $22, the stock appears to be cheap, but cheap doesn't always mean it's investable. Until Intel proves it can consistently deliver on growth, profitability, and innovation, this remains a 'show-me' story in a market that rewards execution, not promises.
Yahoo
15-07-2025
- Business
- Yahoo
Why Wolfspeed Stock Plummeted 94% in the First Half of 2025 -- and What Comes Next
Wolfspeed stock saw huge sell-offs across the first half of the year as its financial outlook worsened. The company issued disappointing sales guidance for its next fiscal year, and it did not receive the CHIPS Act funding that had been anticipated. Wolfspeed's share price has seen a big bounce early in this year's second half, but the stock could be headed for another collapse. 10 stocks we like better than Wolfspeed › Wolfspeed (NYSE: WOLF) stock saw massive sell-offs across the first half of this year's trading. The company's share price fell 94% across the first six months of 2025, according to data from S&P Global Market Intelligence. The valuation collapse occurred despite a 5.5% gain for the S&P 500 index across the stretch. Wolfspeed stock saw big pullbacks in conjunction with poor quarterly results, a weakening sales outlook, and rising expectations that that the company would file for bankruptcy. The silicon-carbide specialist did submit preliminary filings for Chapter 11 bankruptcy protections at the end of June. Wolfspeed's share price saw fluctuations that amounted to relatively little cumulative movement up until March -- when news hit that prompted huge selling action. For starters, the company announced that it was planning on cutting its capital expenditures (capex) for the next fiscal year by between $150 million and $200 million. It also said that it was aiming to cut capex for the fiscal year after that by between $30 million and $50 million. The cost-cutting move suggested that the silicon-carbide specialist was cutting back on growth initiatives and raised red flags among investors. Later in the month, the stock got hit with an even bigger bearish catalysts. Reports began to circulate that the $750 million in CHIPS Act funding that had been apportioned to the company through the bill would not be distributed due to policy shifts from the Trump administration. Wolfspeed has a large debt load and was looking at the CHIPS Act as a major source of funding, and news that the capital would not be arriving on the expected schedule prompted a big sell-off for its stock. Wolfspeed stock got hit with another round of big sell-offs in May when the company reported results for the third quarter of its 2025 fiscal year, which ended March 30. While the company reported a loss per share that was lower than Wall Street had anticipated, its sales for the period came in lower than anticipated. While the sales miss in fiscal Q3 was disappointing, the real kicker was management's revised guidance for the next fiscal year. Wolfspeed said that it now expected sales of roughly $850 million for the period, falling far short of the average Wall Street analyst estimate's call for sales of roughly $959 million in the period. The news added to concerns that Wolfspeed was heading for bankruptcy, and the company finally filed submitted preliminary Chapter 11 filings on June 30. Wolfspeed stock has actually had a big recovery really early in this year's second half. The surge for the company's valuation kicked off when the silicon carbide specialist announced that it was filing for preliminary Chapter 11 bankruptcy protections at the end of June. The bullish rally picked up even more steam after the company announced that Gregor van Issum would be its next chief financial officer. The stock is now up 260% in the second half of the year, but the gains could be unsustainable. Due to the company's bankruptcy filings, there's a large probability that the company's stock will be delisted from the New York Stock Exchange in the very near future. Wolfspeed shares will likely continue to trade over the counter, but there's a huge risk that its stock price will plummet upon delisting. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wolfspeed. The Motley Fool has a disclosure policy. Why Wolfspeed Stock Plummeted 94% in the First Half of 2025 -- and What Comes Next was originally published by The Motley Fool Sign in to access your portfolio
Time of India
11-07-2025
- Business
- Time of India
Intel facing a BlackBerry moment as thousands laid off - CEO says too late to catch up with AI as firm falls out of global top 10
Intel CEO Lip-Bu Tan made a shocking admission, saying it's now 'too late' for Intel to catch up in the AI race, as the company falls out of the top 10 semiconductor companies. Once a leader in chipmaking, Intel now faces massive layoffs, a $16 billion loss, and increasing reliance on TSMC for chip production. The company has lost ground to rivals like Nvidia, AMD, and Apple, especially in AI and data centers. With a renewed focus on edge AI and agentic systems, Tan promises change, but Intel's future remains uncertain. Read how the tech giant plans to reinvent itself. Intel CEO Lip-Bu Tan says it's too late to catch up with Nvidia in AI, as Intel drops out of the top 10 semiconductor companies and faces global layoffs, heavy losses, and a complete shift toward edge AI and chip outsourcing. Tired of too many ads? Remove Ads Why is Intel struggling to keep up in the AI chip race? Tired of too many ads? Remove Ads Has Intel really fallen out of the top 10 semiconductor companies? AI chip market: Intel left behind Global AI chip market was worth $23.2 billion in 2023 Projected to reach $117.5 billion by 2029 at a CAGR of ~31% Nvidia holds an estimated 90% share in AI training chips Intel's $20 billion bet on U.S. chipmaking Investing $20 billion in a new Ohio AI chip plant Backed by the CHIPS Act, receiving billions in grants Eligible for a 35% tax credit on investment in U.S. fabs Market share comparison: Who leads the AI chip race? Company AI Focus Area Market Position Key Advantage Nvidia AI training & inference ~90% market share Dominant CUDA software ecosystem, H100/Blackwell chips AMD Data center AI GPUs Rising rapidly Competitive MI300X chips with increasing adoption TSMC Manufacturing/foundry Backbone of AI industry Manufactures chips for Nvidia, AMD, Apple Intel Edge AI (future focus) Minor AI share Investing in U.S. fabs, but far behind in AI chips Tired of too many ads? Remove Ads Strategic pivot or final chapter? Edge AI: Chips powering autonomous devices, cars, and smart sensors Agentic AI: AI chips focused on decision-making in real-time systems Foundry services: Becoming a U.S.-based manufacturer for others, not just itself Why did Intel lose its lead in CPU and GPU innovation? Is Intel going to split its business or become fabless? What's next for Intel as it lays off thousands and refocuses? Can Intel find a second act, or is this the beginning of the end? Intel CEO Lip-Bu Tan admits it's "too late" for Intel to catch up in AI training. The company reportedly no longer ranks among the top 10 global semiconductor firms. Intel posted a $16 billion loss in Q3 2024 and is laying off thousands worldwide. The company now outsources 30% of chip production to TSMC. Intel's future focus includes edge AI, agentic AI, and potentially a fabless business model. FAQs: Intel, once the undisputed leader of the semiconductor world, now finds itself at a critical crossroads. In a leaked internal discussion, Intel CEO Lip-Bu Tan made a brutally honest admission—he believes it's already 'too late' for Intel to catch up in the AI competition. The statement, shared during a global employee Q&A, reveals just how far the tech giant has fallen, even slipping out of the top 10 semiconductor companies by Tan's own sharp self-assessment highlights the company's struggle to stay relevant amid fierce competition from AMD, Nvidia, Apple, TSMC, and Samsung. While Intel still holds legacy clout, that alone may not be enough to power through the rapidly evolving AI era. And with layoffs underway and massive losses stacking up, the pressure to turn things around has never been having the resources and infrastructure once deemed untouchable, Intel has fallen behind in the AI hardware race. Lip-Bu Tan's comment—"On training, I think it is too late for us"—makes it clear that Nvidia's runaway success in data center GPUs has created a gap that may now be impossible to development today heavily depends on powerful training hardware, most of which runs on Nvidia's CUDA-based ecosystem. While Intel tried to enter this space with its Habana Labs acquisition and Gaudi AI chips, it never gained the market traction needed to compete with Nvidia's H100s or AMD's MI300X chips. The rise of large language models like OpenAI's ChatGPT only widened the gap, further cementing Nvidia's of pushing further in data center AI, Intel plans to pivot towards edge AI, focusing on bringing artificial intelligence to personal devices like laptops, desktops, and embedded systems—where it still sees growth what's perhaps the most jarring part of Tan's talk, he reportedly said: 'Twenty, 30 years ago, we were really the leader. Now I think the world has changed. We are not in the top 10 semiconductor companies.'This admission shocked many across the tech industry. While Intel is still a recognized name globally, competitors like TSMC, Nvidia, Samsung, Apple, and AMD have outpaced it in terms of innovation, revenue, and market relevance. Even relatively smaller firms like Broadcom, MediaTek, Micron, and SK Hynix are making waves in specialized to recent financial data, Intel reported a $16 billion loss in Q3 of 2024, and it's struggling to reverse the trend. The company that once nearly acquired Nvidia for $20 billion is now watching from the sidelines as Nvidia crosses a staggering $4 trillion market decision to exit the AI training chip space comes as the AI chip market explodes in value. Key stats:Meanwhile, AMD is quickly gaining ground with its MI300 series, and TSMC is dominating as the primary chip manufacturer for Nvidia, Apple, and conceding the AI training space, Intel is attempting a pivot:This move aims to revitalize Intel's role as a domestic foundry powerhouse, producing edge and agentic AI chips rather than competing directly with Nvidia's data center once-vibrant CPU leadership has failed to translate into GPU or AI-specific success. Analysts note that even if Intel builds capacity, it lacks the software stack, developer loyalty, and ecosystem that power Nvidia's now hopes to find success in:However, these bets are long-term, with profitability and success far from guaranteed.A big part of Intel's decline can be traced to delays in its own chipmaking technology. While AMD partnered with TSMC to produce cutting-edge 5nm and 3nm chips, Intel stuck with its internal foundries. Unfortunately, those fabs fell behind own hybrid architecture, similar to ARM's design, didn't take off the way it had hoped. Its Arrow Lake and Meteor Lake CPUs failed to gain significant ground on AMD's Ryzen and EPYC series, especially in high-performance computing. AMD now powers everything from handhelds like the Steam Deck and Rog Ally X, to gaming consoles like the PlayStation 5 and Xbox Series X/ Intel's attempts at entering the discrete GPU market with its Arc lineup were too little, too late. The GPUs suffered from driver issues, performance gaps, and poor market timing. By the time Intel showed up, Nvidia and AMD had already cornered the growing speculation that Intel may split into two entities—one focused on designing chips (like AMD and Apple) and the other running its foundry operations as a separate business. While nothing has been confirmed officially, the strategy could relieve some pressure and allow Intel to act more of 2025, Intel already outsources about 30% of its chip production to TSMC, a move that would have been unthinkable years ago. TSMC is now producing major parts of Intel's upcoming Lunar Lake and Meteor Lake chips, including the GPU and compute tiles. Intel's long-delayed 18A node—the supposed game-changer—isn't expected to be ready until late shift to a fabless model, or something close to it, could be Intel's path to survival. Both AMD and Apple have succeeded by focusing entirely on chip design and leaving manufacturing to TSMC. Nvidia has always followed this model, cut costs, Intel has been laying off thousands of employees globally. These layoffs come as part of a larger cost-cutting initiative after heavy R&D spending and failed product launches. According to OregonTech, the company is in "a fight for survival."CEO Lip-Bu Tan, who replaced former chief Pat Gelsinger in late 2024, has signaled a major cultural reset. He emphasized that Intel's comeback would be a 'marathon', not a sprint. The new approach? Fewer distractions and a laser-sharp focus on areas where Intel can still compete—namely edge AI, low-power computing, and eventually reclaiming performance leadership in CPU is also betting big on agentic AI, a fast-growing field where AI systems can operate independently without constant human input. He teased that more executive-level hires are coming to help accelerate the transformation, saying, 'Stay tuned. A few more people are coming on board.'The honest reality is, Intel has already missed the first AI wave. Nvidia owns the training market. AMD is now winning in data centers. TSMC continues to dominate manufacturing. Even Apple's M-series chips are setting new standards in efficiency and Intel isn't dead. It's wounded—yes—but not out. With the right leadership, sharper product focus, and a little humility, the company could still stage a comeback. The road ahead won't be easy, and it won't be fast. But if there's one thing we've seen from tech turnarounds, it's that big brands can rise again—if they're willing to let go of the survival now depends on its ability to adapt—not just to AI, but to a world where speed, specialization, and scale matter more than legacy. The next 18 months will likely determine whether the company can climb back into relevance, or fade deeper into the CEO Lip-Bu Tan said Intel missed the AI training wave led by Nvidia and can't catch up according to Tan, Intel is no longer among the top 10 semiconductor firms globally.
Business Upturn
08-07-2025
- Business
- Business Upturn
Questex's Sensors Converge 2025 Celebrated 40 Years with Unmatched Energy, Innovation & Industry Growth
NEW YORK, July 08, 2025 (GLOBE NEWSWIRE) — Questex's Sensors Converge 2025 wrapped an unforgettable event in Santa Clara celebrating 40 years of sensors and electronics innovation while setting the stage for the future of smart technologies. The event drew 18% more attendees year-over-year and welcomed 60+ new exhibitors, making it one of the most energized and future-focused editions to date. The three-day event, held June 24–26 at the Santa Clara Convention Center, featured breakthrough product showcases, visionary keynotes, and high-impact panels—with topics ranging from edge AI to tariff policy and electronics trade to the future of women-led innovation in tech. 'The 2025 edition was not only a celebration of our 40-year legacy but a clear reflection of the innovation and collaboration driving the future of our industry,' said David Drain, Show Director, Sensors Converge. 'From the packed sessions to the energy on the show floor, this was our most dynamic show in recent history.' Highlights from Sensors Converge 2025: Industry Momentum and Community Growth : Attendance surged by 18% year-over-year, reflecting strong market demand and community engagement. : Attendance surged by 18% year-over-year, reflecting strong market demand and community engagement. Expanding Expo : Nearly 200 exhibitors (including 60+ first-time participants) showcased technologies spanning chips, software, edge devices, AI integration, and more. : Nearly 200 exhibitors (including 60+ first-time participants) showcased technologies spanning chips, software, edge devices, AI integration, and more. Thought Leadership on Display : Keynotes from Jaime Lien (Archetype AI), Brian Bircumshaw (Exo), Seong-Hyok Sean Kim (LG Electronics), and Sanjay Kumar (Kearney) addressed sensor-driven AI, smart healthcare, and data-powered spaces Panels & Roundtables covered pressing topics like tariff policy, the CHIPS Act, sensor innovation in energy, and tinyML at the edge The WISE (Women in Sensors & Electronics) panel brought needed visibility to women-led innovation and investment across the sector : Best of Sensors Awards celebrated excellence across hardware, design, AI applications, and new product innovation, as well as individual and company excellence, and the Fierce Electronics 40 Under 40 class of emerging industry leaders. celebrated excellence across hardware, design, AI applications, and new product innovation, as well as individual and company excellence, and the Fierce Electronics class of emerging industry leaders. Meaningful Networking & Experiences: The VIP Program, Curated Meetups and Networking Roundtables, and New Tech Breakfast all created high-touch engagement across the attendee experience. The 40th Anniversary celebration featured a live band, commemorative t-shirts, 80s nostalgia, and the kind of vibrant community gathering that only Sensors Converge could deliver. What the Community Said about Sensors Converge: 'Another great Sensors Converge! My favorite part is all the connections and interaction. Over 5,000 registered and between our three technical partners at the event we got over 150 quality leads,' said Anthony DePaolantonio, W5 Engineering. 'Ten years of attending Sensors Expo & Conference, and this one was extra special. Walking the floor, I was reminded why our sensor community feels more like a family. I reconnected with mentors whom I continue to look up to, swapped war stories with my 'sensor brothers,' and met bright new minds pushing the boundaries of what's possible. The energy was contagious—each year the buzz grows louder, the ideas bolder, and the collaborations stronger,' said Kunal Bajaj, former Google, Nest Labs engineer. 'We had an incredible experience exhibiting at Sensors Converge in Santa Clara last week! For our team at Very, the highlight wasn't just the cutting-edge tech on display—it was the chance to connect in person, share ideas, and build relationships with those shaping the future of connected devices. Heading home inspired and energized by the community,' said Very. 'It was an incredible opportunity to connect with customers, hear insights from technologists, and explore the latest trends shaping our field. Can't wait to see everyone next year!,' said Isabelle Lui, STMicroelectronics. 'Sensors Converge was an award-winning experience from our jam-packed booth to our powerful meetings and our Best of Sensors trophy!,' said Sarah Carlson, ams OSRAM. 'Super productive week at #sensorsconverge conference in Santa Clara. We learned a ton about a lot of nerdy stuff and came away with some clear plans for integrating into our roadmap,' said Mason Bradford, KineticoPRO. 'The event was well attended with the exhibition floor buzz on both days of the conference with some great technical sessions that showcased the present and future of sensors in the age of edge AI,' said Leonard Lee, neXt Curve. 'It was exciting to see innovations in sensor technology, IoT, edge AI, and embedded systems — and how they're shaping industries like healthcare, robotics, and industrial automation. Even better was reconnecting with familiar faces and meeting so many new ones. Looking forward to new collaborations ahead,' said Valentina Podgainaia, Orion Innovation. 'Sensors Converge brought together some of the most exciting innovators in the industry and Solaires Entreprises Inc. was proud to be part of it. Our team had some amazing conversations and came away with strong leads and new connections that we're eager to build on. Events like this are a great reminder of how much interest there is in sustainable technology — and how valuable it is to connect directly with experts advancing practical solutions,' said Sahar Sam, Solaires Entreprises. 'Just back from Sensors Converge 2025 and amazed by the innovation and energy at the event! From AI-powered edge computing to next-gen MEMS, the conference united brilliant minds pushing the boundaries of sensing, connectivity, and intelligent systems. Sensors have transformed into the cornerstone of smarter products in automotive, industrial, consumer, and medical sectors. Excited to be part of an industry constantly evolving and redefining possibilities,' said Mazen Allawi, GlobalFoundries. Save the Date for 2026! Sensors Converge returns to Santa Clara, CA, May 5–7, 2026—with expanded programming, even more exhibitors, and new ways to connect. Exhibitor and sponsorship opportunities are now open. Contact [email protected] or [email protected] for more information. Learn more and sign up for updates at Follow Sensors Converge on LinkedIn, X, Instagram, YouTube, Facebook, and TikTok. About Sensors Converge Sensors Converge ( formerly known as Sensors Expo & Conference, got its start 40 years ago bringing together the design engineering community to network, share ideas, and define the future roadmap for the sensors industry. Sensors Converge is part of the Fierce Technology Group, a division of Questex, which also produces the Best of Sensors Awards, Fierce Electronics and Fierce Sensors, as well as daily content and newsletters on Fierce Electronics at About Questex Questex helps people live better and longer. Questex brings people together in the markets that help people live better: hospitality and wellness; the industries that help people live longer: life science and healthcare; and the technologies that enable and fuel these new experiences. We live in the experience economy – connecting our ecosystem through live events, surrounded by data insights and digital communities. We deliver experience and real results. It happens here. Media ContactCharlene SoucySenior Director, Marketing [email protected]
Globe and Mail
08-07-2025
- Business
- Globe and Mail
Can Intel Benefit From Higher Tax Credits in the New Tax Bill?
With tax credits for semiconductor firms rising to 35% from the existing 25% slab, the new tax bill (dubbed as the 'One Big Beautiful Bill') that President Trump signed into law on July 4 has seemingly offered a new lifeline to Intel Corporation INTC. The law enables Intel to save big while expanding its manufacturing processes in the country before the 2026 deadline. The increased tax credit builds on the 2022 Chips and Science Act, which offers $39 billion in grants and up to $75 billion in loans for manufacturing projects. The company has received $7.86 billion in direct funding from the U.S. Department of Commerce under the U.S. CHIPS and Science Act to advance critical semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon. Intel has been investing in expanding its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. Interim management is committed to keeping the core strategy unchanged despite efforts to drive operational efficiency and agility. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry and is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Intel is reportedly considering shelving most of the third-party production on 18A to focus more on 14A production – the next-generation manufacturing process that purportedly offers competitive advantages against rivals. This marks a significant shift to the foundry business as Intel aims to woo major customers while concentrating more on core operations. Other Semiconductor Firms Likely to Gain NVIDIA Corporation NVDA is likely to gain significant funding for scaling AI infrastructure across federal agencies, research labs and public-private data centers. Federal tax credits and grants for domestic AI training hubs are expected to accelerate demand for NVIDIA's H100, GH200 and Blackwell chips, strengthening its market position as a trusted AI chip provider. The security-grade GPU/IP validation may further open up new federal and defense AI applications for NVIDIA, adding billions in addressable market size. Advanced Micro Devices, Inc. 's AMD AI and high-performance CPU portfolio aligns perfectly with the One Big Beautiful Bill push for AI data center expansion across healthcare, national labs and the telecom sector. Advanced Micro is likely to gain healthy funds for expanding its domestic manufacturing operations to deploy chips in AI-enabled base stations, radio access nodes and autonomous IoT gateways. In addition, R&D hubs in Santa Clara, CA and Austin, TX qualify Advanced Micro for enhanced R&D credits. INTC's Price Performance, Valuation and Estimates Intel shares have declined 36.5% over the past year against the industry 's growth of 16.5%. Image Source: Zacks Investment Research Going by the price/sales ratio, the company's shares currently trade at 1.85 forward sales, lower than 14.76 for the industry. Image Source: Zacks Investment Research Earnings estimates for 2025 have decreased 6.7% to 28 cents per share over the past 60 days, while the same for 2026 have declined 6.3% to 74 cents. Intel stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report
