Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 Sep, 25 | INTC | Buy | USD 35.5 | USD 37.3 | USD 39.5 | 91 days | Closed |
7.27%
|
*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.
Improved Cost Discipline: R&D and MG&A expenses declined from USD 5.6 billion in Q2 FY24 to USD 4.8 billion in Q2 FY25, representing a 13% reduction
Growth in Data Center and AI Segment: Revenue from Data Center and AI (DCAI) increased by 4% year-over-year, rising to USD 3.9 billion in Q2 FY25
Steeper Net Loss: Net income attributable to Intel worsened from a USD (1.6) billion loss in Q2 FY24 to a USD (2.9) billion loss in Q2 FY25, reflecting an 81% decline
Significant Gross Margin Contraction: GAAP gross margin fell from 35.4% in Q2 FY24 to 27.5% in Q2 FY25, a sharp decline of 7.9 percentage points
Intel faces heightened execution and competitive risks due to restructuring disruptions, delayed capital projects, and ongoing margin compression amid intensifying competition in the semiconductor industry
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 35.5 | 31.0 | 37.3 | 39.5 |
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.
Financial Overview: Intel Corporation reported second-quarter 2025 revenue of USD 12.9 billion, which remained flat compared to the same quarter in 2024. On a GAAP basis, the company recorded a loss per share of USD (0.67), while non-GAAP EPS stood at USD (0.10). The company’s performance was affected by restructuring and impairment-related charges.
Impact of Restructuring and Charges: Intel incurred USD 1.9 billion in restructuring charges during the quarter, which reduced GAAP EPS by USD (0.45). Additionally, the company recognized USD 800 million in non-cash impairment and accelerated depreciation charges, alongside USD 200 million in one-time costs. Collectively, these charges negatively impacted both gross margin and earnings per share.
Operational Efficiency and Expense Management: As part of its long-term strategy, Intel is taking decisive actions to streamline operations and improve execution. The company completed the majority of its planned headcount reduction of approximately 15%, aiming to create a leaner and more agile workforce. With these changes, Intel is on track to achieve its USD 17 billion non-GAAP operating expense target in 2025, further reducing this to USD 16 billion by 2026.
Capital Expenditure and Manufacturing Adjustments: Intel continues to emphasize capital efficiency, targeting gross capital expenditures of USD 18 billion for 2025. Strategic decisions include halting certain planned projects in Germany and Poland, consolidating assembly and testing operations in Costa Rica into Vietnam and Malaysia, and slowing construction activity in Ohio to align investment with market demand.
Business Unit Performance: In Q2 2025, Intel’s Client Computing Group generated USD 7.9 billion in revenue, down 3% year-over-year. Data Center and AI revenue increased 4% to USD 3.9 billion, while the Foundry business grew 3% to USD 4.4 billion. Revenue from the "All Other" segment grew significantly by 20% to USD 1.1 billion, reflecting diversification in Intel’s business portfolio.
Product and Strategic Developments: The company launched three new Intel® Xeon® 6 CPUs designed to support AI workloads, including the Intel® Xeon® 6776P processor, currently powering NVIDIA’s DGX B300 system. Intel also achieved a milestone with production wafers on its 18A process technology in Arizona and remains on schedule to ship its first Panther Lake processors later this year. Leadership changes were also made, including the appointment of Greg Ernst as Chief Revenue Officer and several engineering leadership positions.
Outlook: For Q3 2025, Intel expects revenue between USD 12.6 billion and USD 13.6 billion. The company forecasts a GAAP loss per share of USD (0.24) and a non-GAAP breakeven result. Gross margins are projected at 34.1% on a GAAP basis and 36% on a non-GAAP basis. Intel emphasized its focus on execution, efficiency, and strengthening its balance sheet while continuing to build long-term competitiveness.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Intel Corporation (NASDAQ: INTC) at the closing market price of USD 35.50, as on Sep 26, 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 September 26,2025. 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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