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Intel (INTC), a stalwart in the semiconductor world, has once again turned to investment bankers to chart its next move. Known for being a bedrock of reliability among long-term investors, the company is now contemplating parting ways with its Network and Edge Group (NEX) division.
Earlier this year, in April, it parted with 51% of its stake in Altera, handing it over to Silver Lake, a global tech investment titan. Just a month prior, CEO Lip-Bu Tan, in his first public address, doubled down on revitalizing Intel’s innovation engine, signaling a fresh start.
Now, the board is weighing options, whether to sell a stake outright or to bring in a strategic partner for NEX. The segment generated $5.8 billion in revenue in 2024, edging up by a modest 1% from the previous year. It seems NEX no longer fits snugly with Tan’s forward-looking vision.
Meanwhile, INTC shares have taken a hit, hovering near their 52-week low and falling 34% over the past year. So, let’s see whether the chip maker can regain its footing.
About Intel Stock
Intel Corporation (INTC), headquartered in Santa Clara, California, continues to wield considerable influence across both consumer and enterprise markets. With a commanding market cap of $90.3 billion, it stands tall among the largest semiconductor firms globally.
Historically recognized as the primary supplier of microprocessors and chipsets, the company has now begun charting a new course into high-growth arenas like artificial intelligence (AI) and autonomous driving.
In recent months, the road has been bumpy. INTC stock slipped by 15.4% over the past six months. Yet, in the blink of just one month, it rebounded with a 6.2% surge, hinting that the script could flip for the stock.
Intel Surpasses Q1 Earnings
On April 24, Intel lifted the curtain on its first-quarter results, catching Wall Street off guard with a performance that edged past expectations. Revenue came in flat at $12.7 billion, overtaking the anticipated $12.3 billion.
The Client Computing Group (CCG), long a mainstay of the business, felt the pinch as revenue dipped 8% year over year to $7.6 billion. The decline stemmed from customers trimming inventory amid ongoing macroeconomic turbulence.
On the flip side, the Data Center and AI Group (DCAI) offered a glimmer of strength, posting an 8% uptick in revenue to $4.1 billion, buoyed by robust demand for host CPUs supporting AI servers and storage compute.
Intel’s non-GAAP net income declined 23.6% year over year to $580 million. Meanwhile, adjusted EPS fell 27.8% to $0.13 but still surpassed analysts’ expectation of $0.
For Q2 2025, the management projects revenue between $11.2 billion and $12.4 billion, with loss per share expected to land at $0.32.
Analysts predict the Q2 loss per share to narrow 7.1% year over year to $0.13, and a 65.9% fiscal year reduction to $0.29. Yet, the real silver lining glimmers in fiscal 2026, where EPS is forecasted to rebound 165.5% to $0.19.
What Do Analysts Expect for Intel Stock?
The air around the chipmaker remains thick with caution.
Wall Street has tagged INTC with an overall “Hold” rating. Among 38 analysts, two ring the bell with a “Strong Buy,” 31 stick with “Hold,” while five caution with a “Strong Sell.”
The average price target of $22.40 represents potential upside of 10%, while the Street-high target of $62 suggests that the stock can climb as much as 210% from the current price level, hinting at room for a sharp rebound.
