What Could Spark the Intel Stock’s Next Big Move
Intel has experienced remarkable rallies, with multiple instances of 30%+ gains in under two months. Notably, the years 2011 and 2024 saw significant surges, including two rallies exceeding 50% within short periods. If history repeats itself, similar catalysts could drive Intel’s stock to substantial new highs, offering notable upside potential for investors.
Triggers That Could Boost The Stock
- 18A Process Success: On-schedule volume production of Intel’s leading 18A process node in 2025, with early external customer tape-outs, could re-establish manufacturing leadership and attract significant foundry revenue.
- AI Market Expansion: Growing adoption of Gaudi 3 for AI inferencing by major cloud providers like IBM and Dell, alongside new AI PC processors (Panther Lake), will capture high-growth AI segments.
- PC/DC Recovery: A strong PC refresh cycle in 2025 driven by Windows 10 end-of-life and robust demand for new Xeon 6 data center processors are set to significantly boost core business revenue.
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How Do Financials Look Right Now
It certainly helps if the fundamentals check out. For details on INTC Read Buy or Sell INTC Stock. Below are a few numbers that matter.
- Revenue Growth: -3.7% LTM and -9.4% last 3-year average.
- Cash Generation: Nearly -20.6% free cash flow margin and -8.3% operating margin LTM.
- Valuation: Intel stock trades at a P/E multiple of -8.2
| INTC | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Semiconductors | – |
| PE Ratio | -8.2 | 23.8 |
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| LTM* Revenue Growth | -3.7% | 5.6% |
| 3Y Average Annual Revenue Growth | -9.4% | 5.3% |
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| LTM* Operating Margin | -8.3% | 18.8% |
| 3Y Average Operating Margin | -3.9% | 18.2% |
| LTM* Free Cash Flow Margin | -20.6% | 13.4% |
*LTM: Last Twelve Months
But How Does The Stock Do In Bad Times?
When sizing up Intel’s risk, look at how much it fell during major market sell-offs. It dropped around 74% in the Dot-Com Bubble and 55% in the Global Financial Crisis. During the inflation shock in 2022, it slid more than 61%. Even the less severe events like the 2018 correction and the Covid pandemic triggered drops of 25% and 35%, respectively. So, while Intel might have solid fundamentals, these dips show it’s still vulnerable when the market turns south.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read INTC Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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