Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 12 Aug, 25 | INTC | Buy | USD 20.65 | USD 22.0 | USD 23.0 | 2 days | Closed |
14.99%
|
*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.
Operating expense reduction – GAAP R&D and MG&A expenses decreased 13% to USD 4.8 billion in Q2FY25 from USD 5.6 billion Q2FY24
Data Center and AI revenue growth – Increased 4% to USD 3.9 billion in Q2FY25 from USD 3.75 billion in Q2FY24
Gross margin decline – GAAP gross margin fell 7.9 percentage points to 27.5% in Q2FY25 from 35.4% in Q2FY24
GAAP net loss widening – Increased by 81% to USD (2.9) billion in Q2FY25 from USD (1.6) billion in Q2FY24
Intel faces execution risk in delivering its manufacturing transformation and AI roadmap while managing significant restructuring costs and competitive pressures in the semiconductor market
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 20.65 | 18.5 | 22.0 | 23.0 |
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.
Intel Reports Flat Revenue Amid Restructuring and Efficiency Initiatives: Intel Corporation announced its second-quarter 2025 results, reporting revenue of USD 12.9 billion, unchanged from the prior year. The company posted a GAAP loss per share of USD (0.67) and a non-GAAP loss per share of USD (0.10). GAAP results were impacted by USD 1.9 billion in restructuring charges, reducing EPS by USD (0.45), and USD 800 million in impairment charges along with USD 200 million in one-time period costs, together reducing GAAP and non-GAAP EPS by USD (0.23) and USD (0.20) respectively. For the third quarter of 2025, Intel expects revenue in the range of USD 12.6 billion to USD 13.6 billion, with GAAP EPS of USD (0.24) and non-GAAP EPS of USD 0.00.
Cost Optimization and Strategic Footprint Adjustments: As part of its cost-reduction strategy, Intel aims to achieve non-GAAP operating expenses of USD 17 billion in 2025 and USD 16 billion in 2026. The company has completed most of its planned workforce reduction, trimming core staff by approximately 15% to end the year with about 75,000 employees. Intel will also optimize its global manufacturing footprint by halting planned projects in Germany and Poland, consolidating assembly and test operations in Costa Rica into Vietnam and Malaysia, and slowing construction in Ohio to match market demand. Capital expenditures for 2025 are targeted at USD 18 billion.
Segment Performance and Product Developments: In Q2 2025, Intel's Client Computing Group (CCG) generated USD 7.9 billion in revenue, down 3% year-over-year, while Data Center and AI (DCAI) revenue grew 4% to USD 3.9 billion. Total Intel Products revenue fell 1% to USD 11.8 billion, while Intel Foundry posted a 3% increase to USD 4.4 billion. The “All Other” category saw a strong 20% revenue rise to USD 1.1 billion. Intel launched three new Xeon 6 CPUs, including the Xeon 6776P, which powers NVIDIA’s DGX B300 AI systems, and confirmed the first Panther Lake processor SKU will begin shipping later this year.
Balance Sheet Strengthening and Asset Monetization: To reinforce its balance sheet, Intel sold 57.5 million Class A shares of Mobileye in July 2025 via a secondary offering, generating approximately USD 922 million in proceeds. The company remains the majority shareholder in Mobileye and maintains a positive outlook for its long-term growth potential. Intel also achieved a key milestone in its Intel 18A process technology, beginning production wafers in Arizona. Additionally, several new leadership appointments were made in revenue and engineering roles to support execution and innovation priorities.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Intel Corporation Common (NASDAQ: INTC) at the closing market price of USD 20.65, as on August 11, 2025.
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 |
-1.05 2.81% | 36.26 | 32.02 | 26.74 | 2.80 | 1.44 | 3.25 | 15.67 |
| NVDA NVIDIA Corporation |
-6.1201 3.44% | 171.60 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
-15.0635 4.41% | 326.24 | 139.68 | 28.99 | 17.14 | 12.73 | 19.13 | 40.92 |
| TSM Taiwan Semiconductor Manufacturing |
-11.125 3.88% | 275.75 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
-10.48 5.01% | 198.69 | 244.65 | 48.78 | 11.64 | 4.72 | 11.51 | 62.93 |
Data Powered by EOD Historical Data (“EODHD”).
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 is Aug 11,2025. The reference data in this report has been partly sourced from REFINITIV.
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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